While I’m confident that this won’t be an issue for us, I just ran across an interesting article on the costs associated with a failed real estate deal. Depending on when the sale falls through, it can turn out to be quite costly for the buyer in particular, as the buyer is the one that incurs the most third-party fees. Setting aside the issue of earnest money for the moment, here’s a quick rundown of the fees that you won’t get back if you fail to seal the deal. Note that these costs may be incurred even if the deals falls through due to a failed contingency, such as problems with the inspection, or a failure to procure financing.
— Inspection fee
— Title search
— Attorney fees
— Appraisal fee
— Financing costs (buying an extension on your rate lock)
— Document preparation fees
The bottom line is that a failed real estate deal can easily cost the buyer several thousand dollars. Of course, a failed deal could turn out to be quite costly for the seller, as well, as their house will have to go back on the market, and they could be stuck carrying two mortgages.
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