The Top 6 Reasons that Homes Do Not Close

by Peter Thomas Ricci

What are the most common reasons for why homes do not close?

From financing issues to disagreements over the final sale price, there are many possible reasons for why a house did not close, so we decided to take a closer look via newly released information from NAR.

First, a bit of a disclaimer – the results, which are collected in a graph below, are part of a new set of questions from NAR’s Realtor Confidence Index, and NAR only began collecting the data in February. Additionally, our graph only includes the specific reasons Realtors gave for why a home did not close; the most prominent reason was simply “Other,” and we opted to exclude that from the graph.

So with that in mind, here are a few interesting trends to spot in the graph:

•Financing remains difficult for potential homebuyers; among the options below, financing explanations alone accounted for 40 percent of closing failures.

•Bidding competitions, meanwhile, have fallen dramatically since February, and are down 43 percent.

•Both inspection/appraisal issues are down slightly.

•Finally, though price disagreements fell steadily through April, there was a spike in May, though they’ve fallen since.

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