The fun part of buying a home is searching for your dream home online. The fun part of selling is getting your list price in short order and then closing within 30 days.
The nasty part of home buying and home selling is when your negotiated deal falls apart. Besides the emotional disappointment, there are hard dollars lost by the seller, buyer, and both of their agents.
My friends in the title insurance industry claim that deal ‘bust outs’ can be as high as 15% of all open orders. That’s one out of seven.
There’s many reasons why deals bust out, such as low appraisals, inspections that reveal serious property deficiencies, buyer remorse, seller demands, and many more.
For whatever the reason deals fall out, here’s my guesstimate of what those broken deals cost, with a grand total waste of $4.5 Billion.