Why do home sales fall through? The most common reasons are inspection or repair issues, buyer financing problems, and buyers who can't sell their current home. Most sales still close, and preparation up front helps keep yours on track.
Getting an offer on your home is exciting. You're one step closer to what's next. But what if the buyer backs out before closing?
If you've seen headlines about more sales falling through, that worry is understandable. According to Redfin and Cotality, canceled contracts are on the rise.
Here's what the headlines leave out: most sales still go through. Only about 10% to 15% fall apart. And there's a lot you can do to keep yours from being one of them.
Why More Contracts Are Being Canceled
Buyers are being more cautious. Higher rates are stretching budgets, and with more homes to choose from, buyers feel freer to walk away.
Redfin notes that more options make buyers more likely to back out if an inspection turns up problems, the appraisal comes in low, or the seller won't agree to concessions.
An accepted offer isn't a guaranteed sale. But that's not a reason to avoid listing. It's a reason to get ahead of problems before they come up.
3 Reasons Buyers Back Out (and How to Get Ahead of Them)
A Redfin survey asked agents why buyers are backing out. Here are the top three reasons.
Inspection or Repair Issues (70.4%)
This is the big one, and it's where you can be the most proactive.
Consider a pre-listing inspection before your home hits the market. If something needs attention, you can:
Fix it before you list
Adjust your price
Disclose it and be ready for that conversation in negotiations
In California, sellers are required to disclose known issues, so knowing your home's condition up front works in your favor. It's far better to find surprises before a buyer does.
This is the condition pillar of my three: location, condition, and price. It's the one you control most.
2.Buyer Financing Falls Through (27.8%)
Even pre-approved buyers can run into loan problems before closing, especially with rates putting pressure on budgets.
You can't control a buyer's loan, but I can review their financing closely before you accept an offer. If affordability is the concern, we can look at whether a closing cost credit or a rate buydown would help keep the deal together.
3. The Buyer Can't Sell Their Current Home (21%)
Sometimes your buyer needs to sell their home before they can buy yours. If their sale falls through, yours can too.
Before accepting an offer with a home-sale contingency, it's important to understand where the buyer is in their own sale and what protections you want in place.
The goal isn't to eliminate every risk. It's to plan for the ones you can see coming.
If a Sale Falls Through, It's Not the End
Most sales make it to closing. And if one doesn't, it doesn't mean your home won't sell. Sometimes a buyer's situation changes. Sometimes an issue comes up that can be addressed before the next offer.
What matters is having an agent who spots problems early, handles negotiations, and keeps your sale moving.
You can't control every twist and turn. You can control how prepared you are.
Frequently Asked Questions
How often do home sales fall through?
About 10% to 15% of sales fall through, according to recent data. Most sales still close.
Should I get a pre-listing inspection?
It's often a smart move. It helps you find issues early, so you can fix them, price for them, or disclose them before a buyer's inspection surprises you.
What happens if my buyer backs out?
Your home goes back on the market, often with a better understanding of any issues. Many homes sell to the next buyer.
Let's Get Your Home Ready
There's no need to let the fear of a buyer backing out hold you back. No sale comes with a guarantee, but preparation up front makes the whole process smoother. If you're thinking about selling in San Diego County, call or text me and let's talk about whether a pre-listing inspection makes sense for your home.
Billie Bourgeois | REALTOR® Real Broker | San Diego County, CA DRE# 01703336
