7 Common Reasons Home Sales Fail—And How to Prevent Them

by Tiffany Mitchell

Why Do Home Sales Fall Apart? Common Deal Breakers & How to Avoid Them

Buying or selling a home is an exciting process, but sometimes, deals fall apart before reaching the closing table. Whether you’re a buyer or seller, understanding the most common pitfalls can help you prepare and avoid costly surprises. Here are the top reasons home sales fall through—and how to prevent them.

1. Financing Falls Through

Even when a buyer is pre-approved, their loan can still be denied before closing. This can happen if:

The lender discovers new debts or credit issues.
The buyer changes jobs or has a drop in income.
The home appraises for less than the loan amount.

How to Avoid It:
Sellers should work with buyers who have strong pre-approvals from reputable lenders. Buyers should avoid making big purchases or financial changes before closing.

2. Home Inspection Issues

A home inspection can reveal major structural problems, mold, or faulty systems (HVAC, plumbing, roof) that scare buyers away. Some issues may be too costly or complicated to fix, leading to contract cancellations.

How to Avoid It:
Sellers can conduct a pre-listing inspection to uncover potential red flags early. Buyers should prioritize repairs that are safety-related while negotiating fairly.

3. Appraisal Comes in Too Low

Lenders require an appraisal to confirm the home’s value. If the appraisal is lower than the agreed sale price, the lender may refuse to approve the full loan amount.

How to Avoid It:
Sellers can price their homes competitively and provide comparables (comps) to justify pricing. Buyers can negotiate or cover the difference if possible.

4. Title Issues

Unresolved liens, ownership disputes, or clerical errors on the title can delay or derail a sale.

How to Avoid It:
Sellers should ensure a clean title by working with a title company before listing. Buyers should purchase title insurance for protection.

5. Buyer’s Remorse

Sometimes, buyers get cold feet or second-guess their decision, leading them to back out before closing.

How to Avoid It:
Buyers should thoroughly research homes, neighborhoods, and financing before making an offer. Sellers can maintain strong communication and transparency to keep buyers confident.

6. Contingency Failures

Many sales include contingencies like home sale contingencies (where the buyer must sell their current home first) or repair requests. If these conditions aren’t met, the deal can collapse.

How to Avoid It:
Sellers can prioritize offers with fewer contingencies. Buyers should ensure their existing home is well-prepared to sell quickly.

7. Issues With Closing Costs or Fees

Unexpected costs can shock buyers and cause them to walk away.

How to Avoid It:
Buyers should review loan estimates carefully and discuss closing costs with their lender upfront. Sellers should be aware of potential concessions needed to keep deals on track.

Final Thoughts

A home sale falling through can be frustrating, but proper preparation and working with an experienced real estate professional can help prevent these issues. If you're planning to buy or sell, let Homes By Tiffany guide you through the process smoothly—contact us today!

Tiffany Mitchell

Licensed DC, MD, and VA Realtor