Why Might a Sale Fall Through?

It’s been such a hot seller’s market for the past 3+ years that virtually any home to hit the market was guaranteed to sell, often amid multiple offers and above asking price. Buyers were so desperate and frenzied that some went without inspections or waived contingencies. The real estate market has shifted in 2022, most notably over the summer when mortgage interest rates caused the market to stutter step.

Today, sellers are facing something seemingly unheard of in recent years past: a sale falling through. Cinch Home Services recently performed a survey of 1,000 Americans who tried to buy or sell a home in 2022 and discovered that 20% of those sales ended up falling through. 

Why? 

The biggest theme of the survey was economic uncertainty. As reported, 16% of sales fell through due to buyer job loss and in 23% of upendings, buyers reneged on their offers because they were afraid of an impending recession. 

Since listing a home is no longer necessarily a sure-fire deal, there are a few steps to take to protect yourself as a seller from uncertainty. First, you can require a pre-approval letter from lenders. This way the only potential buyers permitted to view your property are the ones with guaranteed financing to back it up. 

Next, make sure you’re pricing appropriately. Gone are the days of buyers fronting loads of cash to secure a purchase. Now, if there’s an appraisal gap (that is, a discrepancy between an accepted offer and the home’s actual appraised worth), it might be harder to secure the deal. By pricing your home based off of recent comps and not getting too far ahead of yourself in the event of a bidding war, the likelihood of even having an appraisal gap is much smaller. 

Additionally, in order to save a sale that might be falling apart, consider offering to help with closing costs or be willing to budge on issues that may crop up during an inspection. 

Essentially, most sales can be salvaged with a little bit of negotiating. Don’t be afraid to give a little in order to keep things moving!