Things that could go wrong when selling your home
Take steps to evict tenants, get certificates of compliance and ensure financing goes through on time or a deal could fall through.
While many homeowners envision a smooth transaction leading to a lucrative sale, numerous pitfalls can arise, potentially derailing the process and impacting the outcome. Understanding what could go wrong can help sellers avoid these costly mistakes.
Adrian Goslett, the regional director and CEO of RE/MAX of Southern Africa, says you can increase the likelihood of a successful and profitable sale by preparing for possible issues.
“Working with experienced professionals, from real estate agents to home inspectors, will also help you navigate the process more effectively.”
To help sellers be more prepared for what could go wrong, RE/MAX of Southern Africa shares the most common reasons a sale might be unsuccessful.
• Financing problems
Even if you find a willing buyer, financing issues can still arise. Cash buyers might run into trouble making the cash available in time for the transaction to go through. Buyers relying on home finance might fail to secure the home loan for several reasons, including credit problems, insufficient funds for a down payment, or changing financial circumstances. Ensuring potential buyers have pre-approval for a home loan can help mitigate this risk.
• Inspection issues
Inspection issues such as structural problems, outdated systems, or safety hazards can lead to negotiations, price reductions, or even deal cancellations. The risk of this happening is higher for older properties because compliance laws change over time.
Sometimes, the entire house might need rewiring before an electrical compliance certificate can be issued. This can be costly, and if the seller cannot afford to correct the issue, the sale won’t go ahead. It might be worthwhile to inspect the home before listing it for sale to avoid this issue. That way, there is time to save and correct the problems before you have an offer pending.
• Suspensive conditions
When weighing up offers, it is vital sellers consider the suspensive conditions. For example, if the offer is on condition of the sale of the buyer’s property, the buyer possibly might not be able to sell the home for as much as they had hoped, or worse – they are unable to sell it at all. If the sale depends on the vacancy of the property and the tenant in the home refuses to move out, it will be at the seller’s expense to get the tenant legally evicted before the sale can go ahead.
“Selling a home can be a daunting and complex process frequently filled with unexpected challenges. While it can be challenging, understanding the potential pitfalls and leaning on the advice of a RE/MAX agent can help you avoid making costly mistakes and maximise your potential return on investment,” Goslett concludes.
