Nearly one-third of realty agents in a national survey reported contract cancellations — purchases crumbling before going to closing — in February. That’s up dramatically from a similar poll 12 months earlier, when just 9 percent of agents reported cancellations.
An additional 18 percent reported delays in scheduled closings in the latest study, which involved about 3,000 agents surveyed by the National Association of Realtors.
The high reported cancellation rate (31 percent) means that more than triple the number of agents and their clients are running into deal-endangering problems compared with 2011.
You may assume the true market value of a house is what a seller and buyer agree to in a binding contract, but it’s not. The appraiser hired by the bank may come up with a different opinion of value — significantly below what was agreed between the parties — and this is occurring with far greater frequency.
What’s hampering sales:
• Appraisals below contract.
• Ultraconservative underwriting and documentation requirements by lenders
• Poor service by lender staff
Minefields blowing up more housing deals between buyers, sellers
Get this widget