Common Reasons Home Sales Fall Through

Even after a home goes under contract, not every deal makes it to closing. Understanding the most common reasons home sales fall through can help both buyers and sellers avoid costly delays and disappointment.

1. Financing Problems

Loan denials or delays are one of the top reasons deals fail.

Common issues include:

• Buyer taking on new debt

• Job or income changes

• Incomplete or late documentation

2. Appraisal Comes in Low

If the home does not appraise at the agreed price, the lender may not approve the full loan amount.

Possible outcomes:

• Renegotiating the price

• Buyer covering the difference

• Contract cancellation

3. Inspection Issues

Inspections can uncover major repairs or safety concerns that buyers are unwilling or unable to accept.

Examples:

• Roof or foundation problems

• Electrical or plumbing issues

• Mold or water damage

4. Title or Legal Problems

Unexpected liens, ownership disputes, or missing permits can delay or stop a sale.

Why this matters:Clear title is required before closing can happen.

5. Contingency Deadlines Missed

Contracts include strict timelines. Missing deadlines for inspections, financing, or disclosures can jeopardize the deal.

6. Buyer or Seller Changes Their Mind

Life changes, cold feet, or misaligned expectations can cause either party to walk away, especially during contingency periods.

How to Reduce the Risk of a Deal Falling Through

• Get fully pre-approved before making an offer

• Respond quickly to lender and escrow requests

• Address repairs and disclosures early

• Work with an experienced real estate professional

Final Thoughts

Most failed transactions are preventable with preparation, clear communication, and professional guidance. Knowing the risks helps keep deals on track and moving toward a successful closing.