The #1 Reason Deals Fall Through (and How To Prevent It)

August 18, 2025

Two women discuss a real estate matter in a bright living room.

When you sell your house, the last thing you want is for the deal to fall apart right before closing. But according to the latest data from Redfin, that’s happening more often than you might think.

Chart of reasons real estate contracts fell through in June; inspection issues led at 28%, followed by cold feet at 23%.

This past June, 15% of pending home sales fell through. That’s a bit higher than the pre-pandemic norm of about 12% (2017–2019). It may not sound huge, but if you’re selling, you don’t want your home to be part of that statistic.

The good news? With the right strategy, you can protect your sale.


Why Are More Deals Falling Through?

A survey from John Burns Research and Consulting (JBREC) and Keeping Current Matters (KCM) found the #1 reason today’s deals collapse is the home inspection.

Here’s why:

  • Budgets are tight. With today’s higher prices and mortgage rates, buyers don’t have much wiggle room for unexpected repairs.

  • Buyers have more options. With inventory up, they know they can walk away and find another house if yours has big issues.

  • Sellers aren’t always willing to negotiate. If repairs pop up and a seller refuses to address them, many buyers simply move on.


How a Pre-Listing Inspection Helps

One of the best ways to avoid surprises is to get a pre-listing inspection before your home ever hits the market.

The National Association of Realtors (NAR) explains:

“To keep deals from unraveling . . . [a pre-listing inspection] allows a seller the opportunity to address any repairs before the For Sale sign even goes up.”

Here’s what it can do for you:
✅ Fix issues early → Handle repairs before buyers ever see them.
✅ Avoid last-minute renegotiations → No surprise problems that give buyers leverage.
✅ Build trust with buyers → Showing your home is well-maintained can help it sell faster and smoother.

A few hundred dollars spent now can save you thousands later in repair credits or price reductions.


Should Every Seller Get One?

Not always. Whether it’s worth it depends on your house, your market, and your situation. That’s where a great real estate agent comes in. They’ll help you:

  • Decide whether an inspection makes sense for your home.

  • Prioritize which repairs are worth tackling.

  • Navigate disclosure requirements in your area.


Bottom Line

Deals fall apart when sellers get blindsided by inspection issues. A pre-listing inspection helps you get ahead of those challenges and gives buyers more confidence in your home.

Connect with a local real estate agent to see if it’s the right move for you.

Would you rather uncover repairs now, on your terms — or risk losing a buyer when the clock is ticking?

Amber Johnson, Founder
Pillar Real Estate
805.835.3425
[email protected]
1345 Park St. Paso Robles, CA 93446
DRE# 01925434

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