Let’s Explore Your Selling Options. We'll help you sell your home at the price and terms you want. Free Selling Strategy Call
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.
Why does this happen, and how can you avoid it? 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. 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, require strong pre-approval letters from reputable lenders. Ask your agent to vet buyer qualifications carefully, keep contingency timelines short, and request regular lender updates throughout the process.
Also, make sure the buyer’s financing is fully underwritten, not just pre-approved. The goal isn’t just to attract buyers, but to attract buyers who are ready and able to close.
2. 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 their decision, compare your home to another property, or simply feel overwhelmed by the process.
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.
3. Bad inspection or appraisal results. If the inspection uncovers major issues or the appraisal comes in low, buyers may feel like they’re getting a bad deal and decide to walk away.
Even if you agree to repairs or concessions, the uncertainty may still make them nervous. Conducting a pre-listing inspection and pricing your home realistically can help prevent these surprises and keep your deal intact.
4. Life happens. Sometimes it’s nobody’s fault. A sudden job loss, a family emergency, or a divorce can derail even the most motivated buyer. These situations are unpredictable and often out of everyone’s control.
While it’s frustrating, try not to take it personally. Having contingency plans, such as backup offers or flexible timelines, can help reduce the impact if a buyer’s circumstances change unexpectedly.
5. A better option appears. Yes, this one stings. Some buyers keep shopping even after they’ve made an offer. If they find another property they like more, they might use contingencies, like inspection or financing, as a legal way to back out of your deal.
You can protect yourself by tightening contingencies and deadlines in your contract. Shorter timelines and clear expectations help keep buyers committed and prevent your sale from stalling.
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 me at (608) 345-6594 or email me directly at jdholt@kw.com. 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.
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Let’s Explore Your Selling Options. We'll help you sell your home at the price and terms you want. Free Selling Strategy Call
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