One of the most common reasons why a pending sale fails is that the buyer is not eligible for financing. A realtor can still show a pending home, as long as the seller approves it. It's often in the interest of sellers to continue showing the house should their current contract fail. Perhaps the biggest contributor to the decline in outstanding home sales revolves around funding.
Loan approval may simply not be approved, or the money the buyer needs for the down payment may not materialize. There's no way to know for sure if any of these problems are likely to occur. However, sellers can take the proactive step of contacting the buyer's lender to check their financial strength. There's nothing wrong with seeing how likely a buyer is to get approved.
Pending home sales fall more frequently than you might expect. There are several common causes, ranging from a poor home inspection to the sudden discovery of prohibitive liens. Fortunately, sellers can take preventive steps to help minimize the risk of their sale failing. Everything may be going well, but if a buyer is struggling to sell their home, they may have to delay the closing or cancel the sale entirely if they can't sell their old home.
With a home sale contingency, the buyer must sell their home first before they can close their new home.
