A real estate contract isn’t a sure thing. There is a period of time prior to the closing that the transaction
can fall apart. Here are some of the most common reasons why.
Home Appraisal Issues: Most lenders require an appraisal prior to lending and the loan is based on the
appraised value of the home. If the appraisal comes in lower than the sales price, the buyer can pay the
difference, get another appraisal or the seller can lower the sale price.
Home Inspection Issues: A home inspection is generally performed at the request of the buyer. If there
are any major issues discovered, the buyer and seller can negotiate who pays for the repairs. If they can’t
agree on who will pay, the contract can be canceled.
Home Financing Issues: One of the biggest deal killers is a mortgage loan rejection. Even a loan
preapproval doesn’t guarantee that the buyer will get the loan and the slightest change in a buyer’s
income or debt can end a deal.
Home Sale Contingency Issues: Lastly, if the home sale contract is subject to the buyer selling their
home within a certain time frame and their home does not sell during that time, the contract can also be
Many of the reasons why a real estate deal could fall through are controllable while others are not.