Is your home sale about to fall through?

That’s the question some home sellers and agents are fretting about recently, especially in Washington D.C. where 1 in 8 home sales fell through. In fact, deals have been lost before closing at much higher rates than almost a year ago.

And with home prices higher, mortgage rates sky-high, and the cost of any sort of renovation much higher than ever before, it’s not surprising that buyers are walking away from deals due to price concerns. We know it’s a buyer’s market in real estate at the moment, and home sellers need to adjust their expectations and take meaningful action in order to sell into this current headwind.

Let’s break down a few of the savvy moves that home sellers can make to boost the chances of their deals being sealed.

Perform a Pre-listing Home Inspection

A point of contention between the home seller and the home buyer is often the amount of repairs necessary. That’s why engaging in a pre-listing home inspection, where major issues are either fixed or disclosed as part of the listing, serves as a strategic measure to safeguard the sale process from potential pitfalls. This proactive approach bolsters transparency and trust between the seller and potential buyers. By addressing or revealing significant problems in advance, it minimizes surprises that could otherwise lead to a breakdown in the sale.

This upfront honesty not only establishes a foundation of trust but also provides the seller with an advantageous position during negotiations. If major issues are fixed before listing, it can deter buyers from using them as leverage for price reduction or demanding extensive repairs, reducing the likelihood of contentious back-and-forth negotiations that might derail the sale. This approach also saves everyone time, as it circumvents the discovery of unexpected issues during the buyer’s inspection. This ultimately prevents delays and increases the chances of attracting serious, committed buyers who are more comfortable and confident in proceeding with the purchase.

Perform a Pre-Listing Home Appraisal

Engaging in a pre-listing home appraisal provides sellers with an accurate understanding of their property’s market worth before listing, helping to set a realistic and competitive asking price. By knowing the true value of the home in advance, sellers can avoid overpricing, which might otherwise deter potential buyers or lead to extended negotiation processes.

Additionally, a pre-listing appraisal can preemptively reveal any discrepancies or issues that might arise during the buyer’s appraisal, minimizing the chances of surprises or discrepancies between the buyer’s and seller’s perceived values of the property. This upfront knowledge and transparency can instill confidence in both sellers and potential buyers, laying a more solid foundation for the transaction and reducing the likelihood of the sale collapsing due to valuation-related disputes or discrepancies.

Offer a Mortgage Buydown Concession

Sometimes, you need to give a little to get a lot. To sweeten the deal, offering a mortgage buydown concession to the buyer that results in a reduced interest rate is a strong concession that can help push the buyer in the right direction when selling your home.

This strategy is overall also less costly to you, the seller. Consider this scenario from First Bank Mortgage that illustrates the savings to the seller by offering to pay down points instead of simply reducing the price of the home. In this example, First Bank addresses a buyer’s concern of high mortgage rates in two different ways: 1) by the seller slashing the price by $20,000; 2) by the seller buying down the buyer’s rate by 2 points:

Home Price	Down Payment	Loan Amount	Mortgage Rate	Monthly Payment (30 year fixed)
$400,000	5%	$380,000	5.5%	$2,158
Reduced Price Strategy	Down Payment	Loan Amount	Mortgage Rate	Monthly Payment (30 year fixed)	Seller Credit
$380,000	5%	$361,000	5.5%	$2,050	$0
Reduced Rate Strategy	Down Payment	Loan Amount	Mortgage Rate	Monthly Payment (30 year fixed)	Seller Credit
$400,000	5%	$361,000	5.0%	$2,040	$7,600

In the first scenario, the seller ate into their profits by $20,000 to lower the buyer’s monthly payments. In the second, they achieved a similar reduction by only putting in an extra $7,600.

Overall, offering a mortgage buydown concession demonstrates flexibility and commitment to closing the deal, often resulting in a smoother transaction and reducing the probability of the sale falling through due to financial constraints or buyer hesitation.

Solicit Backup Offers

Encouraging backup offers from other buyers puts you the home seller in a position of strength. By actively seeking and accepting backup offers, sellers create a safety net while also demonstrating the seller’s seriousness about moving forward with the sale.

Of course, the best part is that having backup offers puts pressure on the primary buyer to move forward with the sale, knowing that there are other interested parties ready to step in, reducing the chances of the primary deal collapsing and increasing the likelihood of a successful transaction. So be sure to reach out to other interested parties and offer them a position as a backup offer. Likewise, you can also ask your agent to list your property as “accepting backup offers” on the MLS.

Sell with Zoom Casa 

While home sellers can make all the right moves, some deals will always fall through despite best efforts. That’s why a solution like Zoom Casa should be in your pocket as the best backup offer possible. In fact, our Forward program is quickly becoming the first offer that real estate agents are presenting to sellers looking to a) sell quickly in 10-15 days, and b) maximize their value.

Especially in today’s market, our program has helped sellers unlock their equity when they need it the most. So if the other strategies to prevent home sales from falling through don’t work for you, just give us a call.

Learn more about how you can become a cash buyer for your next home using Forward. Book a free 15 minute consultation with us today.