What could go wrong when selling your home
This article gives advice on what could go wrong during a property sale to help sellers avoid costly mistakes.
While many homeowners envision a smooth transaction leading to a lucrative sale, numerous pitfalls can arise, potentially derailing the process and impacting the final outcome. Understanding what could go wrong can help sellers to avoid some of these costly mistakes.
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, says that by preparing for possible issues, you can increase the likelihood of a successful and profitable sale. “Working with experienced professionals, from real estate agents to home inspectors, will also help you navigate the process more effectively.”
To help sellers become more prepared for what could go wrong, RE/MAX of Southern Africa shares the top three reasons why 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 who are relying on home finance may fail to secure the home loan for a number of reasons, including credit problems, insufficient funds for a down payment, or changing financial circumstances. Ensuring that 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Inspection issues such as structural problems, outdated systems, or safety hazards can lead to negotiations, price reductions, or even deal cancellations.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 on older properties because compliance laws change over time. Sometimes the whole house might need to be rewired before an electrical compliance certificate can be issued. This can be incredibly costly, and if the seller cannot afford to correct the issue, the sale won’t be able to go ahead. To avoid this issue, it might be worthwhile to conduct an inspection of the home before listing it for sale. That way there is time to save up and correct the problems before you have an offer pending.
- Suspensive conditions
When weighing up offers, it is important for sellers to consider the suspensive conditions. For example, if the offer is on condition of the sale of the buyer’s property, it is possible that the buyer 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 is dependent on the property being vacant, 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 as planned.
“Selling a home can be a daunting and complex process, often filled with unexpected challenges; and, while it can be challenging, understanding potential pitfalls and leaning on the advice of an agent can help you avoid making costly mistakes and maximise your potential return on investment,” Goslett concludes.
Writer: Kayla Ferguson
