Why Are Homebuyers Backing Out at the Last Minute?

By Kyle Koller

Producing Branch Manager of UMortgage West - The #1 Producing Team at UMortgage

Right now, there’s an epidemic sweeping the housing market: Buyers flaking on deals at the last minute. If you’ve tried to sell your home recently or know someone who has, you’ve probably heard a story about the perfect deal, only for it to fall apart right before crossing the finish line. Why is this happening, and what can you do about it as a seller? And if you’re looking to purchase a home, how can you make sure you can follow through on your offers? Today, I’m breaking down why deals are so shaky right now and how you can come out on top in this weird market:

1. Homebuyers are in a tough position. Currently, the economy is showing signs of weakness. Credit debt is higher than ever, and interest rates are higher than they’ve been in decades. On top of all that, home prices haven’t come down significantly to compensate. This means that buyers need to walk a thin financial line to purchase a home, and while many of them would love to be flexible with their terms and offering prices, they just can’t afford to make concessions.

2. Real estate is hyper-local. What’s happening in your market might not be exactly what’s happening just a few blocks away. However, it’s generally true that buyers have more leverage in negotiations than they used to. Inventory is up across the country, and while most markets aren’t outright favorable to buyers, they have more leverage than they used to. However, no matter what market you’re in, I recommend going into negotiations and being willing to compromise instead of stonewalling on specific issues.

3. Many buyers aren’t properly approved by lenders. The average lender only does the bare minimum and only gets buyers a pre-qualification. As a result, many buyers aren’t pre-approved, and pre-approval is one of the most important things to have for a quick sale and to gain an advantage over the competition. Work with a loan officer who knows what they’re doing and makes sure you have all the documents ready. When you submit your loan, you’re going to be approved, and you can be confident that your loan is going to close.

If your lender hasn’t properly pre-qualified you or you have questions about this topic, you can reach me at (801) 687-2018 or kyle@kylemylender.com. I have a 99.9% success rate for closing on loans. This market can be tough, but we can navigate it together. I look forward to hearing from you!