If you’re like many people selling a home in Aspen, you know that your whole real estate transaction hinges on a prospective buyer being able to pay for your house or condo. But what happens if your buyer can’t get financing?
Here’s what you need to know.
What Should You Do if Your Buyer Can’t Get Financing?
There are still a few ways to salvage the deal if your buyer can’t get financing:
- You can give the buyer more time to find a lender
- You can lower your home’s asking price
- You can make improvements and ask the lender to reappraise the house
- You can move on to the next offer (or keep your home on the market until you get one)
Naturally, these “fixes” won’t work in every situation – but here’s a closer look at each.
Giving Your Buyer More Time to Find a Lender
Sometimes buyers just aren’t working with the right lender. If you’re not getting many (or any) other offers and you really want to work with a particular buyer, it may make sense to give them more time to find financing.
Lowering Your Home’s Asking Price
You can lower your home’s asking price, which might make sense in some situations – especially if the buyer can only get approved for a few thousand dollars less than what you’re currently asking. Talk to your Aspen REALTOR® about whether this idea will work in your situation; if it’s going to seriously impact your profits (particularly if you need the profits for a down payment on your next home), it might not be a feasible solution.
Making Improvements and Asking for a Reappraisal
If your buyer can’t get financing because your home appraisal came back too low, you can choose to make some home improvements that will boost the house’s value. Then, you can ask the lender to reappraise the space – and if the value goes up, it could help your buyer secure the necessary financing to buy your home.
Moving On to the Next Offer or Keeping Your Home on the Market
You always have the option to accept a different offer for your home. You don’t have to wait for the buyer you initially chose to come up with the money to purchase. You can also keep your home on the market until you get another offer, as well.
Why Do Some Buyers Get Turned Down for a Mortgage?
There are myriad reasons buyers get turned down for mortgage loans, but some of the most common are:
- Low credit scores
- High debt-to-income ratio
- Not enough money for a down payment
- Changes to a buyer’s financial situation
- A low home appraisal
Out of these, the only thing you can really work on is the home appraisal (remember, you can make home improvements and ask the lender to reappraise your home). The rest is up to the buyer.
Should You Offer Seller Financing?
Seller financing can be a risky proposition – and it’s not the right choice for everyone. Also called owner financing, seller financing is a type of arrangement in which the buyer makes payments to the seller. The buyer purchases the home directly from the seller. Although it sounds great, there are several risks associated with seller financing. In fact, you should talk to a real estate attorney before you even consider this option.
Are You Selling or Buying a Home in Aspen?
If you’re ready to sell your home in Aspen, Woody Creek, Basalt, Carbondale or Snowmass, we may be able to help you.
Get in touch with us right now to find out how much your home is worth – and discover how we’ll be able to help you sell it quickly and for top dollar.
If you’re also looking for a home for sale in Aspen or a nearby community, check out our listings by price:
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