More Agents Report Deals Falling Through
November 22, 2011
More real estate transactions are being canceled at the last minute, real estate professionals are reporting. In fact, about 33 percent of real estate professionals say they had at least one contract fall through in October—up from 18 percent in September, the National Association of REALTORS® reports.
The increase in contract cancelations was attributed to a number of reasons, including banks declining mortgage applications, home inspectors uncovering problems with a property under contract, appraisals that came in lower for the contract price, or a buyer losing a job prior to closing, according to real estate professionals.
Despite the increase in contract cancelations, existing-home sales rose slightly in October, reaching a seasonally adjusted annual rate of 4.97 million, the National Association of REALTORS® reported on Monday. (Read more from NAR’s October housing report.)
"We are not looking for a housing renaissance but the straws in the wind suggest that activity in the sector might be improving slightly," John Ryding, chief economist at RDQ Economics, told the Associated Press.
Source: “A Third of Realtors say They had at least 1 Contract for a Home Fall Apart at the Last Minute,” Associated Press (Nov. 21, 2011)
Updated: July 15, 2020