If a sales contract falls through
So, you’ve had an offer on your property, the contract of sale has been signed and now that offer has been withdrawn – this can be a disappointing and frustrating experience for any vendor.
But…rest assured, it’s not the end of the line. In most cases it’s just a blip in the sale process that any good agent will handle with ease.
So, let’s look at what happens if a sales contract falls through and where you go from here.
Why might a contract fall over?
The reality is a property is not sold until settlement day, but if the contract of sale has reached unconditional stage it’s expected the buyer will honour the agreement, or face financial consequences such as losing their deposit.
No buyer wants that.
Prior to the contract becoming unconditional there are multiple reasons a sales contract could potentially fall through and generally these are covered under the conditions of the sales contract.
They might include:
- The buyer being unable to access finance
- A pest and building inspection that turns up something unexpected
- Due diligence that reveals something about the property that was unexpected, such as covenants, planned nearby infrastructure, building restrictions etc.
- A changed situation for the purchaser
Regardless of the reason, finding out the property you expected to sell is suddenly back on the market can feel very deflating.
But this is where a great agent really comes into their own.
What happens next?
If the contract ‘falls over’, a great agent will quickly get to work contacting other potential buyers who had previously expressed interest and restarting the sales campaign.
They might start rescheduling open houses, refresh the marketing campaign and look at different strategies to reach out to a new pool of prospective purchasers.
In some, but not all cases, they might reconsider the pricing strategy or sales method for the property, working in consultation with the seller to reignite interest in the property.
For example, if the home had previously been open to offers or for sale by expression of interest, the agent might now opt to put a public price on the property, using previous market feedback to set that price point.
How to manage the emotions
No seller wants to see a contract fall over, and if it does it can feel stressful and disappointing.
That’s why it’s important to appreciate that, although it’s rare, things can and do happen between a sales contract being signed and the sale becoming unconditional then settling.
In the meantime, it’s also important to regain perspective.
Remember, you’ve already had a party seriously interested in buying your property, which means there’s a very, very good chance that others will see the value in buying your home too.
In the end, all it means is that it will take a little extra time. Every property has an ideal buyer – yours just hasn’t yet walked through the doors of your home.
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