More Contracts Are Falling Through. Here’s How To Get Ahead

In 2025, an unsettling trend is emerging in the housing market: more real estate contracts are falling through before closing. Across the country, the rate of pending home sales canceled has increased significantly. For buyers and sellers alike, this is a shift that demands attention and proactive strategies to avoid costly disappointments.

Why Are More Contracts Falling Through?

Several factors are contributing to the rise in failed contracts this year:

• Financing Challenges: Mortgage rates remain elevated, around 6.5% on average, making monthly payments more expensive. Some buyers find their financing falls apart late in the process due to credit issues, income verification delays, or appraisal problems.

• Low Appraisals and Inspection Surprises: Properties sometimes appraise for less than the agreed price, forcing buyers to renegotiate or walk away. Inspection reports uncovering unforeseen repair needs can also derail deals.

• Buyer Hesitation and Market Uncertainty: Economic worries, fluctuating markets, and changing personal circumstances have increased buyer caution. More often, buyers have “cold feet” or face life changes that lead them to cancel.

• Increased Inventory and Options: With more homes on the market, buyers who were under contract sometimes back out in favor of better deals or more appealing properties.
  
  

What Sellers Can Do to Stay Ahead

• Vet Buyers Thoroughly: Work closely with your agent to confirm buyers are pre-approved by reputable lenders and financially prepared.

• Price Smartly: Set a competitive price to reduce the risk of appraisal gaps that can cause issues later.

• Be Transparent: Disclose property condition upfront to limit surprises during inspections.

• Stay Flexible: Be open to negotiations and work cooperatively with buyers to address concerns quickly.
  
  

What Buyers Can Do to Keep Deals on Track

• Get Pre-Approved, Not Just Pre-Qualified: A solid pre-approval from a lender with a clear timeline reduces financing uncertainties.

• Avoid Major Financial Changes: During escrow, avoid taking on new debt or major purchases that could jeopardize loan approvals.

• Order Early Inspections: The sooner inspections are done, the sooner issues can be addressed without delaying closing.

• Communicate Openly with Your Agent: Keep all parties informed about any concerns or obstacles to find solutions swiftly.
  
  

Conclusion

The rise in contract fall-throughs is a sign of a complex, cautious market. But with careful preparation, clear communication, and realistic expectations, buyers and sellers can minimize risks and keep transactions moving smoothly.

If you have questions about navigating contracts in today’s market or want expert help to keep your next deal on track, don’t hesitate to reach out.

Email me at or DM me. I’m here to help you stay ahead of the curve and close with confidence.