A report from Trulia noted that one out of four escrows see a fall out for one reason or another. Yet many top-performing agents say they rarely have an escrow fall out. Today we’ll look at some of the top reasons why a sale falls through, and what agents can do to avoid them.

Let’s start with the contingency period every buyer has – usually 10 to 20 days at the beginning of a 30-60 day escrow. That’s the time when buyers should be nailing down their loan and making sure the property is what they thought it was when they made their offer. But they do have the option to walk away at will, which leads to reason number one:

• The buyer gets cold feet - One option is to keep the contingency period short and work with the buyer and the seller’s agent to resolve contingency issues.

• Buyer can’t get the loan - Experienced agents make certain the buyers are pre-qualified and specify in the contract that they have been approved for the loan. In fact, because ‘stuff happens,’ it can be a good idea for the buyers to have a ‘back-up loan’ in their pocket.

• Inspection reveals a problem - Say it’s something the seller didn’t know about, such as asbestos in the ceiling, or a cracked firebox. Savvy agents keep a list of capable tradespeople who can do the repairs at a reasonable cost, which is often enough to save the sale.

• The appraisal is low - There is little control over who the appraiser is, but the lender should help out and the listing agent should meet the appraiser at the property to make sure he sees relevant comps.

• Buyers can’t come up with down payment - Here again, the savvy agent would have done due diligence and verified the buyer’s source of funds. If the buyer has not demonstrated that funds are liquid and available, an offer shouldn’t have been made.

• Buyer won’t prove ability to buy - In some cultures, it’s considered an insult to be asked to prove ability to pay. Experienced agents determine right away if this is a cultural issue or a negotiating ploy. Either way, the escrow should not have been opened until the issue has been satisfactorily addressed.

• Buyer wants to renegotiate - This, too, can be a cultural issue with buyers from countries where contracts are not respected, and who try to renegotiate at the last minute, thinking they have you over a barrel.

Knowledgeable agents address this early, making it clear at the outset that no request for renegotiation will be accepted after the agreed-upon contingency period. Bear in mind that buyers may not want a house as much as at the time they make an offer. It’s important to use that initial enthusiasm to make the contract as airtight as possible.

*Adapted from an article published by RISMedia

This material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy. This material is not intended to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice.