In our most recent office meeting it was discussed that around 30% of pending sales have fallen out of escrow this year. This statistic was confirmed by a top title and escrow rep in the area who also added, “That’s a very high number compared with previous years”. When asked why there seems to be such a high fall out rate of escrows this year the response was “Many buyers are not able to meet the stringent qualifications that the lenders are requiring.” Even strong pre-approved loans can be turned down during the escrow process. This can be due to final loan underwriting decisions which scrutinize documentation, appraisals, sources of down payment, etc.
Another factor of escrow fall outs is related to my last article, “Which homes are selling fast”. The faster a buyer jumps into a purchase the greater the chance of that buyer feeling remorseful soon after. When quick offering deadlines are met in hopes of lessening competition it’s often difficult for many buyers to make comfortable well-informed decisions. After escrow has opened and the dust has settled it’s not hard for a buyer to change their mind.
Given the multitude of conditions that can prevent a transaction from closing in today’s market it’s most important to know dedicated professionals you can call on and trust. I offer my 20 years of experience successfully closing hundreds of escrows in the Santa Barbara area with you. Your success is always my goal. I appreciate your inquiries and the opportunity to help you with all of your real estate needs.