Why Real Estate Deals Fall Through — And How to Make Sure Yours Does Not. Brought to you by Vance Team Realtors — Southern Ohio's Trusted Real Estate Experts
Here is something that might surprise you. Only about 9% of home purchases actually fall through. That means you have a 91% chance of successfully reaching the closing table — odds that are far better than most buyers and sellers ever realize.
But that 9% is not random. There are specific, identifiable reasons why deals unravel — and the good news is that most of them are completely preventable with the right knowledge and the right team in your corner.
In the video above we walk you through exactly what causes real estate transactions to fall apart and what you can do right now to make sure your deal is not one of the ones that does not make it to closing day.
Keep reading for a deeper dive into everything covered in the video.
The 91% Rule — Better Odds Than You Think
Most buyers and sellers walk into a real estate transaction with a quiet fear that something is going to go wrong. That anxiety is understandable. Buying or selling a home is one of the largest financial transactions most people will ever be involved in.
But here is the reality. The overwhelming majority of real estate contracts — 91 out of every 100 — successfully close. The process works. And when you have an experienced agent reviewing every detail of your transaction from start to finish those odds get even better.
So what happens to the other 9%? Let us break it down.
Top Reasons Real Estate Deals Fall Through
1. Appraisal Issues
Appraisal problems are consistently one of the leading causes of failed real estate transactions. Here is how it happens.
A buyer makes an offer on a home. The seller accepts. Everything looks great. Then the lender orders an appraisal and the home comes in valued below the agreed upon purchase price.
At that point the lender will typically only approve financing up to the appraised value. That gap between the appraised value and the purchase price creates a problem that has to be solved before the deal can move forward.
What are the options when an appraisal comes in low?
- The seller reduces the purchase price to match the appraised value
- The buyer pays the difference out of pocket
- Both parties meet somewhere in the middle
- One or both parties walk away from the deal entirely
None of those options are ideal. Which is exactly why getting ahead of appraisal concerns before they become a problem is so important.
How to protect yourself from appraisal issues:
For sellers, pricing your home accurately from the very beginning is the single most effective way to avoid appraisal problems. Your agent should provide you with a thorough Comparative Market Analysis based on recent comparable sales in your area before you ever list your home.
For buyers, working with an agent who understands local market values and can counsel you on making offers that are competitive but also defensible from an appraisal standpoint is critical.
At Vance Team Realtors we review comparable sales data carefully before every offer and every listing to make sure our clients are positioned for success at the appraisal stage.
2. Contract Contingencies
Contract contingencies are clauses written into a purchase agreement that allow one or both parties to exit the deal under specific circumstances. They exist to protect buyers and sellers — but they can also introduce real risk into a transaction when not managed carefully.
The most common contingencies that cause deals to fall through:
Home Sale Contingency This is one of the most significant risk factors in any transaction. A home sale contingency means the buyer's purchase of the new home depends on successfully selling their current home by a specific date. If their home does not sell in time the entire deal is in jeopardy.
For sellers receiving an offer with a home sale contingency it is important to weigh the risk carefully. Your agent should help you evaluate whether the buyer's current home is actively listed, how it is priced, and how realistic the sale timeline actually is.
Financing Contingency This protects the buyer if their mortgage falls through. While this is a standard and reasonable protection for buyers it does introduce the possibility that a deal could unravel late in the process if the buyer's financial situation changes or their loan is denied.
Inspection Contingency We will cover this in more detail below but inspection contingencies allow buyers to renegotiate or walk away based on the findings of a home inspection. When major issues are discovered and parties cannot reach an agreement on repairs or price adjustments deals can and do fall apart.
How to manage contingency risk:
Work closely with your agent to review every purchase agreement in detail before signing. Understanding exactly what each contingency means — and what scenarios could trigger it — is essential for both buyers and sellers.
3. Inspection Issues
A home inspection is a standard and important part of nearly every real estate transaction. A licensed inspector evaluates the condition of the property and provides a detailed report of findings to the buyer.
When significant issues are discovered — major roof damage, foundation problems, outdated electrical systems, HVAC failure, plumbing issues — buyers have several options depending on what their contract allows.
They can request repairs, ask for a price reduction, or in some cases walk away from the deal entirely. If the seller is unwilling or unable to address the issues the transaction can fall through.
How sellers can get ahead of inspection issues:
One of the smartest moves a seller can make before listing their home is scheduling a pre-sale inspection. This allows you to identify potential issues before buyers discover them during the transaction.
The advantages of a pre-sale inspection include:
- You can address repairs on your own timeline rather than under the pressure of a contract deadline
- You eliminate the element of surprise during the buyer's inspection
- It demonstrates transparency and good faith to potential buyers
- It reduces the likelihood of post-inspection renegotiation or deal failure
- It can actually strengthen your negotiating position
Many sellers avoid pre-sale inspections because they are afraid of what they might find. The reality is that finding issues early gives you control. Finding them during a buyer's inspection puts you on the defensive.
Proactive Steps to Protect Your Transaction
Whether you are buying or selling in Southern Ohio here are the most effective steps you can take to maximize your chances of reaching the closing table successfully.
For Sellers
Price Your Home Accurately From Day One Overpricing is one of the most common mistakes sellers make and it creates appraisal risk from the very beginning. Work with your agent to price your home based on real comparable sales data — not wishful thinking.
Schedule a Pre-Sale Inspection As discussed above this single step can eliminate many of the most common reasons deals fall through. Know what you have before buyers find out.
Address Known Issues Before Listing If you know your roof is aging, your HVAC needs service, or there are other deferred maintenance items — address them before you list. Buyers and their inspectors will find them. Getting ahead of them gives you control.
Review Every Purchase Agreement Carefully Do not sign a purchase agreement without fully understanding every contingency and clause it contains. Your agent should walk you through every detail and flag anything that introduces unnecessary risk to your transaction.
Communicate Appraisal Concerns Upfront If there are factors about your property that could create appraisal challenges — unique features, recent renovations, a location with limited comparable sales — discuss them with your agent before listing. A proactive strategy beats a reactive one every time.
For Buyers
Get Fully Pre-Approved Before You Start Shopping Not pre-qualified — pre-approved. A full pre-approval means your lender has reviewed your financial documents and confirmed your ability to borrow. This eliminates financing surprises late in the process.
Make Competitive and Defensible Offers Your agent should help you craft offers that are competitive in the current market while also being realistic from an appraisal standpoint. Overpaying in a competitive moment can create appraisal problems down the road.
Understand Every Contingency You Sign Know exactly what your contingencies protect you from and what obligations they create. Your agent should explain every clause before you sign.
Be Responsive and Timely Many deals fall apart simply because of delays in communication, paperwork, or decision making. When your agent, lender, or title company needs something from you — respond quickly. Deadlines in real estate contracts are real.
Work With a Lender You Trust Your lender is one of the most important members of your transaction team. Choose a lender who communicates clearly, meets deadlines, and has experience with the loan type you are using.
What Makes the Difference — Your Agent
At the end of the day the single biggest factor in whether a real estate transaction successfully closes is the quality and experience of the agent managing it.
An experienced agent:
- Prices homes accurately to minimize appraisal risk
- Reviews contracts thoroughly to identify and manage contingency risk
- Communicates proactively with all parties to prevent surprises
- Problem solves creatively when challenges arise
- Keeps the transaction moving forward even when obstacles appear
At Vance Team Realtors we have guided buyers and sellers across Highland, Clinton, Adams, Brown, Ross, and Fayette County Ohio through hundreds of successful transactions. We know what causes deals to fall apart and we know exactly how to prevent it.
Our approach is simple. We stay ahead of problems so our clients never have to deal with them at the closing table.
Ready to Buy or Sell in Southern Ohio?
Whether you are preparing to list your home or ready to start your home search, let's talk about how to build a strategy that gets you to closing day successfully.
We are here to be your trusted advisors at every step of the process.
📞 Call or text Bryan: 937-776-3405 📞 Call or text Rene: 937-205-6513 🌐 Visit us at VanceTeamRealtors.com
Have questions about buying or selling in Southern Ohio? Drop them in the comments below — we read and respond to every single one.
Vance Team Realtors — Serving Highland, Clinton, Adams, Brown, Ross, and Fayette County, Ohio, Putting Your Housing Dreams First Since 2015