6 Most Common Reasons Real Estate Deals Fall Through

Posted by Casandra Properties on Friday, April 3rd, 2020 at 8:59am.

Residential real estate transactions can go wrong for a variety of reasons. As a buyer or a seller, it is imperative that you educate yourself. Due diligence isn’t just for the real estate professionals. 

Red flags on the Inspection Report

Prior to listing your home for sale, it is suggested that you do your own home inspection, rather wait on the buyer to do theirs. Inspectors find issues with every home; this is a fact. A pre-listing inspection, however, will give you the opportunity to address and repair any major issues that could frighten away potential buyers and adversely affect the sale of your home. 

Home Inspection Contractor

Such major issues include:

  • Mold
  • Pests
  • Electrical issues
  • Foundation/Structural Issues
  • Basement water infiltration
  • Roof damage
  • Building code issues, such as illegal decks and additions; these can also cause issues with the title.

Bank Appraisal Issues

If a bank appraiser determines that the value of the subject property is thousands of dollars less than the sale price, a real estate deal can easily fall through. The amount for which it under-appraises is key: If it’s only a few thousand dollars, both parties can usually come to terms; however, as that number increases, so does this chance of the deal falling through.

Buyer Home Sale Contingency

In cases where a buyer needs to sell their current home before being able to purchase a new home, they’ll submit an offer with a home sale contingency. This means they can pull their offer if their current home doesn’t sell within a certain time period. And while it may not kill a deal entirely, a buyer home sale contingency can cause your sale to be pending for a very long time.

Issues with Closing Documents

Common problems with closing documents usually involve problems with the title, such as Outstanding liens, public record errors, past bankruptcies, and missing heirs. In addition, the survey can display encroachments or easements that the seller may not have been aware of previously. 

Unforeseen and Unfortunate Factors

Mortgage lenders/banks reject loans due to issues due to unforeseen and unfortunate life events over which they have no control, such as the buyer losing their job, experiencing health issues, or separations/divorces. For a timely example, look no further than how the Covid-19 pandemic is currently affecting commerce.


Time is money

Last but far from least important is time. Time has the ability to kill all deals.

  • Too much time between offer and inspection
  • Too much time between attorney contract review
  • Too much time to close.

This is one of the many reasons why working with a professional is crucial. I am able to identify these issues from day-one to ensure we get to the closing table. Getting an offer is the easy part. Getting the deal to the closing table is what separates your average real estate agent from a true expert and professional. 

So if you are considering listing or buying a home, give me a call and I will be there to help you every step of the way.  For more great articles about everything real estate check out the rest of our blog by clicking this link.

About the author:

Written by: Rob Nixon, NYS Licensed Real Estate Salesperson

Email: rob@casandraproperties.com

Rob Nixon has quickly become one of Staten Island’s most productive and well-regarded commercial real estate agents, and has been directly involved in several hundred million dollars in transactions during his tenure. While Robert covers the full gamut of the industry, his expertise lies in investment sales, retail leasing, and industrial transactions.




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