How often do contracts on houses fall through?

[Anonymous]

We met a wonderful family last weekend at a party who were putting their house on the market the next day. After the party, they invited us over to check it out. It was lovely. We got everything in shape to offer, and when I called today she said she was sad to tell me that they had two offers already, and had signed a contract.

Stupidly, we didn't exchange numbers initially, and she thought we weren't interested. (I would have thought the same.)

Damn. She said she would keep us in mind if something happened. So. . .I have never bought a house. Do contracts fall through often?

[Anonymous]

We had one fall through because the buyers tried to use the inspection to renegotiate the price by a significant amount. we had only been in the house 2 years, and the items they complained of were not legitimate after we agreed to get independent contractors to provide estimates. We decided they weren't acting in good faith and the deal ended up not going through. I think that's pretty common, as is a scenario in which buyers can't obtain financing.

[Anonymous]

a lot considering asshole appraisers are undercutting prices

[Anonymous]

We had two contracts fall through and our house 2 years ago. One was because of the inspection, there was not a lot wrong with the house, the buyers were just being unreasonable, and the other fell through because the buyers couldn't get financing.

[Anonymous]

Anonymous wrote:a lot considering asshole appraisers are undercutting prices

Prices are totally out of wack. I don't think appraisers are assholes, I think the greedy owners are.

[Anonymous]

I think the greedy realtors are. Their outrageous commission model, rates of 5 or 6% only found in the USA, is preventing people from listing, selling, and trading up.

[Anonymous]

We have called listing agents once a house went pending and we were 2 for 2 having the original bidder fall out. First time was for financing issues, second time was a home sale contingency didn't work out in the end. Houses both went back on the market and we knew ahead of time.

Also, both houses were around $1.1m-1.2m so more risk than conforming loan houses.

[Anonymous]

How often do contracts tend to fall through on a house that is a short sale?

[Anonymous]

Anonymous wrote:
How often do contracts tend to fall through on a house that is a short sale?

And /or, how worth it is it to try for the house, if it went under contract as a short sale maybe within the past 2-3 weeks?

[Anonymous]

Anonymous wrote:a lot considering asshole appraisers are undercutting prices

Appraisers in rare cases may not know the area, but they're not assholes. They're a reality check.

[Anonymous]

Anonymous wrote:I think the greedy realtors are. Their outrageous commission model, rates of 5 or 6% only found in the USA, is preventing people from listing, selling, and trading up.

Liar.

http://www.nfn.com.au/selling-property/commission-rates/

http://berlin.angloinfo.com/countries/germany/housebuy.asp

http://www.assignmentscanada.ca/buyingincanada.html

[Anonymous]

Lots of contracts fall through in Arlington, because there have been lot of illegal additions that don't comply with the county code.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think the greedy realtors are. Their outrageous commission model, rates of 5 or 6% only found in the USA, is preventing people from listing, selling, and trading up.

Liar.

http://www.nfn.com.au/selling-property/commission-rates/

http://berlin.angloinfo.com/countries/germany/housebuy.asp

http://www.assignmentscanada.ca/buyingincanada.html

Wanna summarize and show some understanding of what you quickly googled and posted? Queensland Australia: 2.5% commission up to $18k and then 2.5% all-in commission. Germany: well known fact that it is a rental culture, thus showing investment property structures is nonsensical. Canada: 7% on first $100k, then 3% all-in commission thereafter.

Europe/Rest of world: 1% or 2% all-in solicitor sellside fee, they show the houses to the buyers. Often fee increases if sale price higher (1% if X, 1.5% if 125% of X). No buyside agents needed or required.

USA: one of the few places where a sellside and "buyside agent" model is pushed. 5-6% commissions all-in. Huge national and local realtor lobby to protect itself.

Open your eyes, the US's realtor commission's structure is cannibalizing its very own business. Due to such high realtor fees, many are not listing homes, many are seeking 'friendly' sales, many are negotiating commission contracts down, many are using discount brokers and many are considering FSBO. Furthermore, most people who bought houses found it themselves online; the technology nowadays is great. As you also know, there are strong neighborhoods within the beltway; houses sell quickly and values are quite transparent.

[Anonymous]

Anonymous wrote:We had one fall through because the buyers tried to use the inspection to renegotiate the price by a significant amount. we had only been in the house 2 years, and the items they complained of were not legitimate after we agreed to get independent contractors to provide estimates. We decided they weren't acting in good faith and the deal ended up not going through. I think that's pretty common, as is a scenario in which buyers can't obtain financing.

Is a buyer allowed to do that?
I heard if the contract is signed, and if the home inspections shows some thing wrong, they can demand it is fixed or paid for, but cannot really deman whatever and go all extreme
If they do then they are in breach of the contract, in that they never intended to buy the house anyway

[Anonymous]

If they do then they are in breach of the contract, in that they never intended to buy the house anyway

this is hard to prove. Sellers are supposed to disclose what they know about the history of the house but sometimes inspection turns up other things which can worry some if they are already stretched to the limit buying the house to begin with.

Also, I think sometimes, unfortunately, buyers find something else in the meantime that they like better and try and get out of deal no. 1 by finding something they get stuck on in the inspection...