Top 5 Reasons Why Buyers Cancel a Home Sale

By JP Fluellen

JP became a licensed real estate agent in 2010 after being a real estate investor for 2 years. He’s been a top real estate agent at Coldwell Banker The Property Exchange and has recently started the Titan Real Estate Team at eXp Realty.

Most people think that once their home goes under contract, the hard part is done. They feel ready to celebrate and start packing. Then something hits the deal, and everything collapses. I’ve seen this happen many times over the years, and most of the time it could have been prevented. If you know the common problems and how they show up, you can protect yourself and keep your deal on track.

Let’s walk through the top deal killers and what you can do to avoid them.

1. Inspection surprises. This is one of the biggest reasons a deal stops. Buyers do not want hidden problems. They want to know the home is safe and in good shape. They expect a used home will not be perfect, but they still worry when the inspector finds things they weren’t told about.

As a seller, you can get ahead of this by doing a pre-listing inspection. This gives you a clear picture of what is wrong, what is normal for the home’s age, and what you want to fix. It also gives buyers confidence because nothing is hidden. Buyers can decide early if they want the home, and you avoid big fights later.

2. Financing falling through. Financing problems show up fast and hit hard. A buyer might give you an offer but not have a real pre-qualification. They may not have talked to a lender, checked their credit, or shared their finances. Some buyers even take out new loans or open credit cards after going under contract. This can sink the deal.

You can protect yourself by requiring a strong pre-qualification before you accept an offer or even before showings. You can include this in your listing to avoid confusion. This attracts serious buyers who are ready to go. If you’re selling a manufactured home, talk with an agent who knows which lenders can handle that type of home.

3. Low appraisals. A low appraisal is one of the most frustrating deal killers because you cannot control it. You can have a great buyer and a great home, but if the appraiser comes in low, the deal may not push through. Most buyers don’t want to pay more than the appraised value unless they have cash and are willing to use it.

This is why pricing your home right from the start is important. If you price too high, you push away the right buyers and set yourself up for an appraisal problem. A clean, well-priced listing has a much better shot at making it to the closing table.

4. Cold feet. Every year, I see buyers back out for one simple reason: they get scared. Sometimes they don’t like the payment. Sometimes they just change their mind. It doesn’t happen often, but it does happen.

The best way to prevent this is to secure enough earnest money, ensure buyers speak with their lender before making an offer, and ensure they understand the payment terms before they commit. This keeps the process serious.

5. Too many contingencies. Some offers come with a long list of conditions. The buyer needs to sell a home. They need more time. They need repairs. They need post-occupancy. When you stack too many of these together, the deal becomes weak and can fall apart fast.

Always remember to review each step of the process, set clear expectations, and make sure every buyer is fully qualified before accepting an offer. Work with a real estate professional who can guide you through these challenges and help you protect your sale from start to finish.

If you have questions or want to talk through your situation, feel free to call or text me at 307-772-1184 or email me at jp@titanreteam.com. I’d be happy to help.