Top 3 Reasons Your Real Estate Transaction Can Fall Apart

Posted by Amber Jensen on April 11, 2022

Top 3 Reasons Your Real Estate Transaction Can Fall Apart

Top 3 Reasons RE Contracts can Fall apart.

We all know there are many obstacles to overcome while navigating a home sale/purchase. That’s why it’s important to have an experienced agent on your side. Home inspection - If you are so fortunate to get a home inspection after you submit your offer now a days, it is usually the biggest hurdle to overcome. With an inspection period, the buyer can rescind anytime before stated in the contract even without having an inspection, if the inspection reveals something that needs to be addressed and the buyer and seller can’t come to agreement, the transaction can terminate as well.  Over years of experience many issues can come up in an inspection i.e. water damage, roof leaks, foundation issues, crawl space and rodent problems, mold and so many others. This is often a high stress time negotiating repairs, at least it used to… Now inspections are being waived or a pre-inspection is done before (either by seller or buyer) so the buyer knows what they are getting into and can offer accordingly.


Appraisal - This part has been known to kill a deal and not necessarily because buyer/seller wants to terminate but if an appraisal comes in lower than the purchase price (there are ways to protect against that) or sometimes the lender will request a work order to be addressed before closing. Sometimes other issues brought up as well but that’s for another day. 


Financing - this one can fall apart all the way until the very end! Even if you are fully approved, if there is a change, it can affect your financing. The biggest ones are job change/loss, big purchases, available funds & transferring money. You should always check with your lender if you have any changes during the transaction! 

Title - in some instances seller does not have marketable title which means they don’t have the ability to actually sell the property and other problems have occured affecting title and closing.  

Personal Reasons - Sometimes life happens and there is a reason that either buyer or seller may not want to go through with the sale.


As you can see there are many obstacles to overcome to get to the closing table. When working with a professional you get their knowledge, experience and resources help guide you through these although sometimes it’s just not meant to be. Rule of advise: it’s not closed until it’s closed!