Selling a home can present a number of challenges, but some of the most exasperating issues that can arise include delays in the sale or the deal falling through completely. In the realm of finances and purchasing power, things are not always as they appear. Fortunately, there are a few red flags in real estate transactions that sellers should keep an eye out for concerning potential buyers that could prevent complications and frustration.

For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.

Buyers Who are Only Pre-Qualified

There is a difference between being pre-qualified for a mortgage and being pre-approved. Sellers who are serious about selling their home should aspire to only deal with buyers equally interested in making a purchase. In today’s real estate market, serious buyers understand that being pre-qualified for a loan won’t have the seller’s interest piqued as much as being pre-approved by a lender. In general, a simple phone call or answering a few questions on a website may get buyers pre-qualified for a mortgage loan.

However, it takes serious due diligence to become pre-approved for a mortgage. Beyond having good credit, borrowers need to prove that they have current income or viable assets and resources to complete the purchase in addition to necessary funds for a down payment. No pre-approval letter is a red flag for home sellers that should be noted.

Buyers Asking for Excessive Closing Assistance

It’s not unusual for buyers in certain markets to request sellers to cover a percentage of the closing costs. Those asking for the maximum amount of closing assistance (or more) is a home seller red flag. This could indicate that the buyer may not have adequate fiscal resources to complete the purchase or be financially stretched.

Buyers Who Include a Surplus of Contract Contingencies

Other red flags for home sellers are those buyers who may request multiple home sale contingencies to be included within the purchase agreement. There is nothing unusual about buyers making a few requests for repairs or negotiating for price reductions to address any problems discovered during an inspection. However, if the number of contingency requests grows to an unreasonable amount, dealing with the buyer can become cumbersome quickly.

While contingencies are not unusual in the home selling process, an excessive number or unreasonable requests can be a sign of challenging buyers. This might also signal buyers who might be desperate to lower the homes purchase price to an unacceptable amount for the seller. It’s important in these situations to allow a real estate professional to handle interactions with potential buyers asking for multiple contingencies. They understand both the buyer’s and sellers’ concerns and are often successful in help both parties find a middle ground during negotiating these types of contractual issues.

Buyers Trying to Slow or Speed Up the Transaction

Most property or home sales typically take between five to ten weeks to process until the deal is considered closed. If buyers or their agents begin asking for additional time, this might be a sign of trouble. Things such as credit or financing issues may be causing the buyers mortgage lender to slow things down for unknown reasons.

Another red flag is when buyers seem to want to move more quickly than the average buyer. An experienced real estate agent might wonder what the rush is, which could be that the buyer was denied for a previous property. History can easily repeat itself, and sellers could find their deal falling through, too.

When selling a home, it is wise to consult with a professional Maple Grove real estate agent locally to help determine any red flags sellers may be flying.

For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.