What Can Go Wrong in a Non-Direct-to-Buyer Home SaleSeptember 14th, 2022
A direct-to-buyer home sale happens when you sell your home for cash without going through the typical process of a conventional sale. Instead of using a realtor, listing your property on MLS, or posting a for-sale sign in your yard, you sell your home directly to an interested buyer. This could be a house flipper, a real estate investor, or an individual you know. Selling to a direct home buyer removes the middlemen from what is normally an arduous process. It also eliminates some of the risks of a non-direct-to-home-buyer sale.
The Appraisal Comes Back Too Low
Most conventional sales depend on a lender for funding. When a lender enters the picture, the sale can easily fall through if the appraisal turns out too low. No mortgage company will lend more for a house than the amount that it is appraised for. If the offer price is higher than the appraisal value and the prospective buyers can’t afford to make up the difference, the deal will crumble and you will get a quick kick back down to ground zero.
The Inspection Uncovers Issues
If serious issues with the house are uncovered during an inspection the mortgage could be deferred or even canceled. Most lenders won’t go through with a home loan if the house has extensive damage such as cracks in the foundation, leaking pipes, major electrical issues, peeling lead-based paint, and more. While repairs can be made to get the funding back on track, many of these repairs are too costly for the seller to manage. In that case, you could be unable to sell your home unless you find a direct home buyer.
The Funding Falls Through
In addition to a low appraisal or inspection issues, your buyers could lose their funding thanks to pest damage, applying for too many credit cards, accruing too much debt, or being unable to pay any outstanding liens. Just because your buyer has been preapproved for a loan does not mean they will actually be approved for one.
The only way to avoid these risks is to sell your home buyer-direct. This eliminates the need for funding. Additionally, most direct home buyers will purchase your home as-is. Selling your home to a direct buyer cuts out the time, expense, hassle, and uncertainty associated with a conventional sale.
If you want to sell your home in the Salt Lake area without the uncertainty of a conventional sale, look no further than Bob Buys Houses. Click here to learn more!