Under Contract…maybe

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.