According to the Existing Sales Report issued two weeks ago by the National Association of Realtors (NAR), the percentage of cancelled contracts is on the rise. NAR defined this alarming trend as: “Contract failures – cancellations caused largely by declined mortgage applications or failures in loan underwriting from appraised values coming in below the negotiated price.”
This issue only serves to highlight the importance that both buyers AND sellers take the time to pick the right real estate professionals that will be able to help you throughout the process with all of your real estate needs.
Buyers should make sure that their agent will not only be able to help find them the right home, but will be helpful and knowledgeable throughout the process, i.e. mortgage, title, escrow, etc.
Sellers should take note that now, more than ever, agents have to be able to sell your home twice: first to a qualified buyer, and then to the bank by way of the appraiser. The second sale can be MUCH more challenging–coming up short here could potentially kill the deal. However, the right agent will have no trouble selling your home during an appraisal.
The bottom line is that in the current housing market, there are too many things that can go wrong before and during the Escrow process. Now, more than ever, it is absolutely crucial for sellers and buyers to use the right real estate professionals to guarantee that their deal will actually close.