Why So Many Home Deals Fall Through (And How to Protect Your Investment)

For many first-time sellers and new investors, the hardest part of real estate isn't finding a buyer. It's making it all the way to the closing table.

Here's a surprising fact: more than 15% of home purchase contracts fall through before closing (National Association of Realtors, 2023). That means that about one in six accepted offers never makes it to completion.

If you are building wealth through real estate, understanding why deals collapse and how to prevent that can make the difference between frustration and financial freedom.

The Most Common Reasons Buyers Walk Away

While every transaction is unique, the data shows some clear patterns behind failed closings:

• Home inspections: According to the National Association of Home Builders, nearly 86% of buyers hire an inspector, and significant issues such as roof damage, foundation cracks, or outdated electrical systems can quickly derail a deal (NAHB, 2024).

• Financing issues: Roughly 7% of purchase contracts collapse due to mortgage problems including low appraisals or last-minute loan denials (NAR, 2023).

• Appraisal gaps: With fluctuating home prices, appraisals sometimes come in below contract value, leaving buyers short on financing.

How Smarter Due Diligence Keeps Your Deal Alive

As a seller or investor, you cannot control everything. But you can reduce risk through proactive steps:

• Pre-inspection: Identifying and fixing issues before listing can prevent unwelcome surprises later.

• Tight financial vetting: Work with buyers who are pre-approved (not just pre-qualified) and whose financing terms align with your timeline.

• Clear disclosures: Transparency builds trust. Being upfront about property history, repairs, or quirks can reduce fallout when the inspector comes in.

• Professional guidance: Leaning on experienced real estate agents, inspectors, and attorneys creates fewer cracks for deals to slip through.

What Every Seller Should Do to Avoid Being a Buyer’s Nightmare

For everyday Americans breaking into real estate investing, reputation matters. A seller known for poorly maintained properties, slow responses, or evasive disclosure can scare off serious buyers. Sellers who present properties clearly and professionally tend to close faster and often at stronger prices.

Closing successfully isn't just about today’s deal. It sets the stage for the next buyer, the next property, and the next opportunity to build your portfolio.

Closing With Confidence

Yes, deals can and do fall through. But with preparation and smart due diligence, you can minimize those risks and approach every transaction with more confidence.

Whether you are selling your first home or adding another property to your portfolio, the lessons are the same. Know the risks, prepare for them, and stay proactive.

Let’s Continue the Conversation

If you're exploring real estate and want to avoid the common pitfalls that derail so many deals, a conversation with an experienced guide can make all the difference.

We offer strategy sessions designed to help everyday investors like you get clear on next steps, understand risks, and build confidence before diving in.

Book a strategy session with us here.