The #1 Reason Buyers Walk Away (And How To Get Ahead of It)
In recent news, many buyers have been backing out of contracts, with numbers rising to levels not seen since 2017. While this may seem alarming, the truth is that it varies significantly by market. However, there’s one key thing you can control, and that’s preventing one common dealbreaker that often causes buyers to walk away from deals.
The Top Dealbreaker: Home Inspection Issues
A Redfin survey reveals that over 70% of canceled contracts were due to issues found during home inspections (see graph below):
Buyers today have more options than ever before, giving them the flexibility to be more selective.
Buyers today want to feel confident that their investment is solid, and if the home shows signs of trouble, it can be a major red flag.
Why Fixing Issues Before Listing Matters More Than Ever
A few years ago, in a market with limited homes for sale, buyers were more willing to overlook minor issues. But in today’s market, where there are plenty of homes to choose from, skipping essential repairs can make a house less desirable.
Buyers now have the luxury of being picky. If a home seems like it could come with expensive surprises or feels outdated, they are far more likely to walk away.
So, what exactly should you fix before listing your property? Your real estate agent will be the perfect person to advise you on this.
How Your Agent Can Help You Stay Ahead
A local agent has firsthand knowledge of the market and the most important issues buyers are looking for. They’ll be able to walk you through your home and offer recommendations based on your property’s specifics, your market conditions, and buyer priorities in your area.
Sme of the issues that tend to turn off buyers include:
● Roof Leaks or Damage: Sagging, leaks, etc.
● Plumbing Problems: Standing water, leaks, water damage.
● Electrical Concerns: Outdated or exposed wiring, missing GFCI outlets.
● HVAC Issues: Non-functioning units.
● Pest or Insect Damage: Termite damage.
● Hazardous Materials: Lead, mold, asbestos.
● Safety/Code Violations: Missing smoke detectors, windows stuck shut.
● Structural Problems: Cracks in the foundation, sagging floors.
These might not apply to your home, but even if only one or two issues are present, addressing them early can make a huge difference.
The Benefits of a Pre-Listing Inspection
For buyers, these issues aren’t just cosmetic; they’re trust issues. If a buyer feels like there could be hidden problems, it can sour their impression of the home. That’s why many agents recommend conducting a pre-listing inspection, giving you a sneak peek of what buyers will find.
With a pre-listing inspection, you can:
● Fix Issues Before Listing: Address repairs before you even put the house on the market.
● Avoid Pressure Negotiations: You won’t be caught in last-minute fixes or negotiations.
● Plan Ahead: You’ll have more time to find contractors and get the work done, avoiding a scramble as closing day approaches.
Remember, you don’t have to fix everything. But being strategic about the repairs you tackle will prevent surprises during negotiations and keep the deal on track.
How Your Agent Can Guide You Through It
A good agent will help you decide if a pre-listing inspection makes sense for your property. They’ll also help you:
● Choose a Trusted Inspector: Find a reliable inspector if you decide to go ahead with one.
● Review Results: Go over inspection results and identify critical dealbreakers.
● Make Decisions on Repairs: Decide what needs to be repaired or what to offer as a credit.
● Stay on Budget: Ensure that your repairs and preparations are both cost-effective and impactful.
Inspection issues are one of the top reasons buyers back out of deals. Fortunately, this is something you can control. By being proactive about addressing high-priority repairs before listing your property, you can avoid this dealbreaker altogether.
If you’re looking to sell and want guidance on where to focus your efforts, let’s connect and make sure your sale stays on track from day one.