TIL that a signed contract means nothing when the buyer's financing falls through

I was standing in an empty 3-bedroom in Austin last Tuesday, waiting for the buyer's inspector to show up, when their loan officer called to say the deal was dead due to a hidden tax lien I somehow missed. Now I'm out 18 hours of legwork and stuck renegotiating with the seller who's furious at me. Has anyone else had a deal crater this hard at the last minute?

3 comments

3 Comments

reese_lee1d ago

@hannahj49 nailed it, people rush deals because they trust the process more than the people.

karenc202d ago

Start getting pre-approved letters from the buyer's lender before you ever let them schedule an inspection. Saved me when a similar deal fell apart last spring and I had backup cash buyers ready within 48 hours.

hannahj492d ago

That exact move saved me $4,200 in staging costs last year when a buyer backed out two days before closing. @karenc20 is right, get those pre-approval letters upfront and ask for proof of funds from cash buyers too. I started making buyers show me the actual lender email with income verification before I'd even unlock the door for a showing. Had one couple who looked solid on paper but their pre-approval letter was from a fly-by-night online lender that didn't even answer the phone when I called later. The lender paperwork saved me from wasting three weekends on open houses for them.