6 Ways To Keep Your Home From Falling Out of Contract

In today’s real estate market, many homeowners are thinking about selling, but also a bit nervous about all the news circulating when it comes to buyers backing out of contracts, canceling transactions at the last minute, or failing to get approved for a mortgage loan. As expert local Realtors in the Pinellas County and Tampa Bay areas of Florida, we’ve put together a list of 6 ways to keep your home from falling out of contract to help ease the stress that can come with selling a home. Keep reading below to find out more…

• Loan Approval Letter- Make sure the buyer shows proof of their loan qualification via a pre-approval letter. In today’s market, we’ve seen some pretty dramatic mortgage interest rate changes and changes in loan programs. NEVER accept a loan pre-approval letter that’s past 30 days old. Too many factors are changing and you want to be sure the buyer is still approved for the initial loan amount they started with. We also recommend requiring a pre-approval letter vs a pre-qualification letter from a lender. The pre-approval means the lender has done more work to qualify a buyer for a loan  compared to a pre-qualification.

• Get Proof of Funds- During the contract negotiations, it is extremely important to have your Realtor ask the buyer or their agent for proof of funds. This is often supplied via a bank statement or letter from a financial institution and shows that the buyer truly has the funds to close, in addition to any loans being used to purchase the property. Again, this is extremely important.

• Ask for a 2nd Escrow Deposit- Another great way of finding out how serious a buyer is about closing on a home is asking for a 2nd escrow deposit during the contract negotiations. The 2nd escrow deposit is in addition to the 1st one the buyer makes when the contract is executed. It can be deposited with the title company any time prior to closing, but must be specified on the purchase agreement/contract. Many Realtors will advise a homeowner to ask for the 2nd deposit to be made AFTER the home inspection contingency is completed or after the financing contingency is completed  (if there is one). This not only shows a deeper commitment to getting to the closing table, but can also be another sign of good faith that the buyer has the cash to close.  

• Get a Pre-Listing Home Inspection- One of the easiest ways to find a great buyer AND reduce contingencies on a contract is to have a pre-inspection of your home before you list it. The benefits far outweigh the cost of the home inspection. For starters, it will give you the opportunity to identify any problems that need to be fixed before you list your home for sale. Secondly, when you have a clear 4-point inspection and a wind mitigation report available to give to buyers, you’re showing them that your home is insurable and in great condition. This also makes it easier for potential buyers to get homeowners insurance quotes upfront so they can be sure the premiums fall within their affordability range. If you have a waterfront home or a home in a flood zone, we also recommend getting an elevation certificate if you don't already have one or providing your current flood insurance policy, as many are assumable by the next owner of your home. This is another document that will allow a home buyer to get flood insurance estimates upfront so they can be sure the premiums fit within their budget. (See more on 4-point Inspections Here)

• Inspection Period- Be sure to negotiate a reasonable inspection period, especially if you’ve already gotten a pre-listing home inspection (see bullet point above). We recently had a buyer ask for 20+ days to inspect a home we had listed. Their agent eventually admitted to us that they were actually still looking for other properties and needed the extra inspection time to make a final decision about moving forward with the purchase. Needless to say, our seller did NOT accept that offer when the buyer wouldn’t shorten the inspection period to a more reasonable amount of time. You don’t want a non-committal buyer putting your home under contract, taking it off the market, and keeping serious buyers from seeing it.

• Be Open to Backup Offers- If you’re feeling unsure about a buyer despite the above steps, that’s ok! Selling a home can be stressful for even the most experienced home owners. If it’s not too strenuous to continue showing your home to qualified buyers while it’s under contract, we recommend accepting backup offers while continuing to allow showings. For more details on how to do this in an ethical and legal manner, you'll want to consult with an experienced real estate agent (a.k.a. us!)

Summary

While selling a home might feel stressful in today’s real estate market, it’s important to keep in mind that an experienced local Realtor will be able to recommend the above steps and more when it comes time to list your home for sale. When you list a home with the Sandy Hartmann Group, rest assured you’ll be in good hands with one of the top real estate teams in Tampa Bay. 

There’s a reason we sell more homes and close more transactions than 99% of other Realtors in the Tampa Bay area.

If you’ve been thinking of selling your home and would like a free in-person home valuation, or if you just have questions about buying or selling a home, feel free to call us at (727) 400-3315 or message us your questions here. As always, we are here to help you with all your residential and commercial real estate needs!

Other Articles to Check Out:

What is Title Insurance and Who Pays For it?

10 Ways to Prepare Your Home to Sell for More Money

5 Steps to Avoid Key Delays on Closing Day