Failed Sales On The Rise
In 2016 we saw an increase in “Sale Fails” here in the DC area.
In other words, “Back on the market we go!” And nobody likes that.
It’s hard to explain, but it feels like you are quietly telling that world “The last buyer thought my baby was ugly.”
It wasn’t too bad here locally. Be glad you don’t live in Ventura, CA. They led the country with close to 12% of their sales failing.
Imagine, 12% of the market in Ventura is suffering from “Ugly Baby” drama.
Here in DC we had about 4% of our properties go back on the market.
The next logical question – Why do they fail?
Mortgages, Appraisals and Inspections are responsible for the vast majority.
So this month at WREIA we are going to focus on Mortgages.
Specifically, lets bring in a mortgage pro who understands the DC area. She works for a local bank.
When you are dealing with banks local and regional banks are the best – in my opinion. They are big enough to have a team of people that are able to close, but still small enough that your contacts are local. Their knowledge of the area runs deep.
How do you know they buyer who just signed off to buy your property is qualified? What steps have you taken that will help you sleep better at night?
96 out of the top 100 metro areas across the country had an increase in failed sales. Nationally, we nearly doubled the rate of 2015. Locally, we just had a slight uptick.
Don’t panic. An uptick in relistings is just a sign of a balancing market. If you renovate a home correctly, price the home well and have a well qualified buyer under contract – it should be smooth “sailing” to the close.
Putting a good team together – so that everyone gets to the closing table – should be a high priority as an investor. Maybe the highest.
It helps tremendously to have a local mortgage pro on your team who understands what it’s like to be an investor in the DC area.
Washington REIA Network, President
Profitable Property, Founder