Getting an offer on your home is exciting because you're one step closer to your next chapter. But what happens if the buyer suddenly backs out or disappears before closing?
If you’ve been seeing headlines about more home sales falling through, you might be wondering if it could happen to you. And the concern is real. According to Redfin and Cotality, canceled home sales have been increasing.
But there's more to the story than what those headlines are telling you…
Most home sales still make it to closing. Only about 10% to 15% fall through, and there are steps you can take to help make sure your sale stays on track.
The key is understanding what might make buyers change their minds and addressing those concerns early before they get in the way of your move.
What's Behind the Rise in Canceled Contracts?
Today's buyers are taking their time and being more careful with their decisions. Higher mortgage rates are putting pressure on budgets, and with more homes available, buyers have more options and may walk away if something doesn't feel right. As Redfin explains:
““That gives house hunters more options and makes them more likely to walk away if an inspection uncovers problems, an appraisal comes in low or the seller doesn’t agree to concessions.”
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That's why getting an offer doesn't always mean the sale is a done deal. But that doesn't mean you should be hesitant to put your home on the market.
It simply means being prepared and addressing potential issues early is more important than ever.
3 Things That Can Scare Off a Buyer (and How To Get Ahead of Them)
A Redfin survey asked real estate agents why some buyers decide to back out. Their answers give us a helpful cheat sheet on what can go wrong and how you can avoid those issues before they become a problem. (See graph below.)
1. Inspection or repair issues (70.4%)
This is one of the biggest concerns, but the good news is it's also something you can take steps to prevent.
One of the best ways to avoid surprises is to get a pre-listing inspection before putting your home on the market. This gives you time to decide whether to make repairs, adjust your asking price, or disclose any issues upfront. That way, you're prepared for buyer negotiations instead of being caught off guard. It's always better to discover potential problems before the buyer does.
2. Buyer financing falls through (27.8%)
Even buyers with a mortgage pre-approval can run into financing problems before closing. With mortgage rates making homes less affordable, some buyers are struggling to make the numbers work.
You can't control whether a buyer's loan gets approved, but you can work with your agent to review their financing before accepting an offer. If affordability is an issue, your agent can also help you consider incentives like closing cost credits or a mortgage rate buydown to help make the deal more affordable.
3. The buyer can't sell their current home (21%)
Sometimes, your buyer needs to sell their current home before they can purchase yours. If their sale falls through, it could put your deal at risk too.
That's why you should understand any home-sale contingencies before accepting an offer. Your agent can help you check how far along the buyer is with selling their home and what steps you can take to protect yourself.
The goal isn't to prevent every possible problem. It's to be prepared for the ones you can see coming so nothing catches you by surprise.
Don't Let the What-Ifs Keep You Up at Night
Keep in mind that headlines about canceled deals don't tell the whole story. Most home sales still make it to closing successfully.
And if a sale does fall through, it doesn't mean your home won't sell. Sometimes a buyer's situation changes, or an issue comes up that you can fix before the next offer comes along.
What really matters is working with an agent who can spot potential issues early, guide you through negotiations, and help keep your home sale on track.
You can't control everything that happens along the way, but you can make sure you're prepared for whatever comes your way.
Bottom Line
Don't let the fear of a buyer backing out keep you from selling your home. While nothing is guaranteed, taking a few steps to prepare ahead of time can help make the selling process much smoother.
If you're thinking about selling, let's connect and talk about whether a pre-listing inspection is the right move for you.
