In today’s market, closing a real estate deal is becoming more difficult than it used to be. According to recent national data, nearly 15% of all pending home sales are falling apart before they close—a noticeable increase from past years. So what’s going on, and how can buyers and sellers protect themselves from being part of that statistic?

Let’s take a look at the leading causes behind these failed transactions, and the proactive steps that can make all the difference.

The Top Reasons Contracts Are Falling Apart

A closer look at recent numbers reveals a clear pattern: inspection issues are the #1 deal killer, responsible for approximately 28% of canceled contracts. In today’s high-price, high-interest-rate environment, buyers are already stretching their budgets. That means they have little tolerance for unexpected costs. When a home inspection reveals major issues—like roofing, electrical, or foundation problems—many buyers are walking away rather than trying to negotiate.

Another major contributor? Cold feet. About a quarter of failed deals are due to one party backing out. Combine that with financing problems, low appraisals, and competing offers, and it’s easy to see how fragile many deals are in today’s climate.

How Pre-Listing Inspections Can Prevent Surprises

For sellers looking to avoid these pitfalls, a pre-listing inspection is one of the smartest investments they can make. While not required, it offers huge strategic advantages:

• Identifies problems before they scare off buyers

• Allows pricing to reflect condition transparently

• Builds trust and credibility with prospective buyers

By addressing issues up front—or simply disclosing them early—a seller gains control over the narrative and can sidestep stressful, deal-threatening surprises later on. It’s a proactive step that often results in a smoother sale and a stronger negotiating position.

Why It Matters That Your Agent Attends the Inspection

One often overlooked tactic that can help keep deals alive is having the real estate agent present during the buyer’s home inspection.

An experienced agent can:

• Clarify and contextualize inspection findings in real time

• Minimize misinterpretation of technical language

• Begin preparing negotiation strategies on the spot

Without that support, buyers may misread inspection reports and overreact to relatively minor issues. Something like a “double-tapped breaker” may sound alarming, but is typically a simple fix. A calm, knowledgeable agent can help buyers stay grounded and focused on the bigger picture.

Actionable Advice for Buyers and Sellers

For Sellers:

• Invest in a pre-listing inspection

• Fix or disclose major issues early

• Price appropriately based on condition

• Work with an agent who’s highly involved and responsive

For Buyers:

• Lean on your agent’s guidance through the inspection process

• Understand that no home is perfect—prioritize what matters most

• Keep emotions in check and think long-term

• Have financing prepped early to avoid last-minute loan issues

For Both Parties:

• Choose a seasoned agent who will anticipate issues and advocate fiercely on your behalf. Their expertise could be the difference between closing or canceling.

Bottom Line

Real estate contracts are falling through more frequently in today’s uncertain market, but with the right preparation and a savvy strategy, most of these failed deals are entirely preventable. By addressing inspection concerns early, staying grounded during the process, and having a skilled agent by your side, you can keep your transaction on track—and get to the finish line with confidence.

If you're considering buying or selling a home, now more than ever, it pays to be proactive.

Join Jackie and Randolf on this week's market update video!