Posted by: Don Diltz | October 21, 2011

Failed Transaction Rate Up to 18% – Take Heed!

Wells Fargo reported yesterday that existing home sales declined slightly in September to a rate of 4.9 million from a little over 5 million.  More remarkable is that NAR said DFTs continued at a rate of 16-18% since June of this year up from rates under 10% since all of 2010 and earlier 2011.  Home price changes depend entirely on specifics of locale, type of home and price range; the high end has plenty of buyer lately indicating the smart money says this is a good time to buy.

The high rate of failed transactions is indicative of the high level of buyer anxiety and is a huge threat to home sellers.  It may also portend of softer demand over the winter months. 

TAKE HOME MESSAGE – As usual it is important to price well.  Even more than usual, it is important that the disclosure process be complete prior to entering a contract.  Discovery of new information by a buyer during the escrow period can be the death knell of the deal and remarketing will be tagged by the failed sale.

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