Under Contract…maybe

Posted by Greg Eckler on Tuesday, June 28th, 2016 at 9:28am.

Have you driven by a house for sale and seen the “Under Contract” or “Sale Pending” sign added when a home has a signed contract?  Have you also noticed this sign get removed a few days later? This happens when a potential buyer terminates a contract and the seller is stuck putting the house back on the market to solicit the next buyer. 

This week I’m breaking down how often a house goes back on the market after having a contract in place.  There are about eight reasons in a Colorado real estate contract for a buyer to terminate a contract:

  1.       Title documents
  2.       Non-public matters
  3.       Due Diligence Documents
  4.       Inspection
  5.       Insurance
  6.       Appraisal
  7.       Survey
  8.       Loan

Each one of these options allows for the buyer to terminate accordingly and get a full refund of their earnest money (in most cases). 

In Denver, 18% of detached homes and 14% of attached homes go back on the market after having the first signed contract.  In the below I have broken out the percent’s on various price ranges.  If you are selling a home, just know that the first contract may not be the last contract.  If you are buying a home, that money you just spent on inspection may need to be spent again on the next house.

 Note: This representation is based in whole or in part on content supplied by REcolorado®, Inc. REcolorado®, Inc. does not guarantee nor is it in any way responsible for its accuracy. Content maintained by REcolorado®, Inc. may not reflect all real estate activity in the market.

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