The Top Reasons Deals Fall Through (And How to Keep Yours on Track)
Real estate deals can feel like a roller coaster—full of excitement, anticipation, and, at times, a few unexpected twists. While most transactions move smoothly from contract to closing, some hit roadblocks that can derail the process altogether. Understanding the most common reasons deals fall through can help buyers and sellers take proactive steps to keep their transaction on track.
1. Financing Issues
One of the most common reasons a deal falls apart is a buyer’s financing falling through. This can happen if a buyer is pre-qualified but not fully pre-approved, or if their financial situation changes mid-transaction—such as changing jobs, taking on new debt, or making a large purchase.
How to avoid it:
Buyers should secure a solid pre-approval (not just pre-qualification) and avoid making any major financial changes during the process. Sellers can ask for a pre-approval letter upfront to gauge the buyer’s reliability.
2. Home Inspection Surprises
Inspections often uncover issues—some minor, some major. When repairs become contentious or expensive, deals can fall apart quickly.
How to avoid it:
Sellers should consider a pre-listing inspection to address any major red flags. Buyers should approach inspections with a mindset of compromise, especially for older homes where some wear and tear is expected.
3. Appraisal Discrepancies
If the home doesn’t appraise for the purchase price, it can create problems with financing. Lenders won’t approve a loan for more than the home is worth.
How to avoid it:
Sellers can price their home based on current market data. Buyers can be prepared to negotiate—or make up the difference—if they really want the home and feel the value is justified.
4. Title Issues
Problems with the title—such as undisclosed liens, errors in public records, or boundary disputes—can delay or prevent closing altogether.
How to avoid it:
Sellers should ensure they have clear title before listing. Working with a reputable title company and real estate agent can help prevent surprises during the closing process.
5. Contingency Failures
If a buyer’s current home doesn’t sell in time or they fail to meet another contract contingency, the deal can collapse.
How to avoid it:
Make sure contingency timelines are realistic. Sellers should consider backup offers when contingencies are in play. Buyers should be strategic about the timing and sale of their current home.
6. Cold Feet
Sometimes, buyers or sellers simply get nervous or have a change of heart. While emotional, this can be a real obstacle.
How to avoid it:
It helps to have clear goals, a trusted real estate advisor, and a good understanding of the process. Confidence grows when expectations are managed and questions are answered upfront.
Stay One Step Ahead
Deals don’t usually fall through without warning. With the right preparation and guidance, many issues can be resolved or avoided altogether. At Embry Group Real Estate, we walk with you every step of the way—from contract to close—to ensure your transaction goes as smoothly as possible.
Have questions about the process or need help navigating your next move? Reach out to Embry Group today—we’re here to help keep your deal on track.