The National Association of Realtors (NAR) released their Existing Sales Report two weeks ago and in the report they discussed a troubling trend: cancelled contracts are increasing dramatically. NAR defined the issue:
“Contract failures – cancellations caused largely by declined mortgage applications or failures in loan underwriting from appraised values coming in below the negotiated price.”NAR explained that 18% of all contracts were cancelled in August. This compares to 16% last month and 9% in August of 2010. The percentage of cancelled contracts has doubled in the past year!! It is extremely important that both buyers and sellers pick the right real estate professional to assist them with their real estate needs.
BUYERSMake sure your agent can not only help you find the home of your dreams but also find you professional assistance with all aspects of the transaction (mortgaging, title, etc.)
SELLERSRealize that your agent must sell the home twice:
- to a qualified buyer
- to the bank (through the appraiser).