Don't let a "clean" offer turn into a costly cancellation. I’m going over how to vet pre-approval letters and spot high-risk contingencies before you sign.
Getting an offer on your home is a big moment. It feels like the finish line is finally in sight. But here’s the truth: an accepted contract doesn’t guarantee a smooth path to closing.
Nearly one in four real estate deals falls apart before reaching the settlement table. That means thousands of sellers each year find themselves starting over after weeks of work and anticipation.
Why does this happen, and how can you avoid becoming part of that statistic? Let’s look at the five most common reasons buyers cancel a home sale and, more importantly, what you can do to keep your deal on track.
1. Home inspection issues. For most buyers, the home inspection is the first real stress test. They want reassurance that they’re making a sound investment, not inheriting expensive problems.
If the inspector uncovers roof damage, foundation cracks, or aging systems, buyers may react by asking for steep repairs or walking away entirely. Even small issues can snowball into doubt if they’re not addressed openly.
I recommend a pre-listing inspection. It gives you a clear picture of your home’s condition and allows you to either make repairs or set expectations in advance. By being proactive, you reduce the chances of last-minute surprises derailing your deal.
2. Financing falls through. It’s easy to assume that once a buyer is pre-approved, their loan is safe. Unfortunately, financing can fall through even late in the process. A job change, a new car loan, or an underwriting red flag can undo weeks of progress.
When financing fails, sellers are left scrambling, often after already pulling their home off the market. To avoid this, I recommend requiring strong pre-approval letters from reputable lenders. Ask your agent to vet buyer qualifications carefully and keep contingency timelines short. The goal isn’t just to attract buyers, but to attract buyers who are ready and able to close.
“Most sales don’t collapse because of price; they collapse because of surprises.”
3. Low appraisal. Appraisals can create another stumbling block. If an appraiser values your home below the contract price, the lender won’t approve the full loan amount. The buyer then has to cover the gap in cash, or you, as the seller, must agree to lower your price.
When neither side can bridge the difference, the deal may collapse. What you can do is price your home realistically from the start. Overpricing often leads to appraisal gaps and stressful renegotiations. A competitive, data-driven list price helps attract serious buyers who can follow through.
4. Cold feet or buyer’s remorse. Sometimes the problem isn’t financial, it’s emotional. Buying a home is a big commitment, and buyers can get spooked. They may second-guess the decision, compare it to another property, or simply feel overwhelmed.
While you can’t control a buyer’s emotions, you can keep the process steady. Clear timelines, consistent communication, and an experienced agent help maintain momentum. Deals that move forward with confidence are less likely to unravel.
5. Too many contingencies. Every contingency in a contract represents a potential exit point for the buyer. When a buyer says, “I’ll buy if my current home sells,” or “I need six weeks for inspections,” or “My financing could take two months,” that’s a red flag. The more conditions attached, the greater the risk of delays and cancellations.
When accepting an offer, you need to remember that you shouldn’t focus on price alone. A slightly lower offer with fewer contingencies can be more reliable than a higher one filled with strings. Strong, clean terms often lead to smoother closings.
Getting under contract is exciting, but it’s only half the journey. The real win is making it to the closing table with confidence and minimal stress. If you’re thinking of selling, preparation is everything. Address potential inspection issues, evaluate buyer financing carefully, price strategically, and look closely at the terms of each offer, not just the numbers.
When you take these steps, you reduce your risk of cancellations and set yourself up for a smooth, successful sale.
If you’re planning to sell, let’s connect. Call or email me, and I’ll help you prepare your home, review offers wisely, and avoid the most common deal-breakers that derail a sale. Let’s make sure your next contract gets to the finish line.
