More Deals Are Falling Through. Here Is What That Means For You
Canceled home purchases which fail to close are up this fall. It is not a reason to panic, but it is a reason to plan. The Wall Street Journal reports that roughly 1 in 7 purchase agreements failed to close in September and points to job worries, higher than expected ownership costs, and tougher negotiations as common triggers. You can read the original WSJ piece here.
What The Data Says
Cancellations have climbed compared with last year as buyers and sellers feel uncertain. Some buyers are rethinking purchases after layoffs or because insurance and property tax quotes land higher than they budgeted. Inventory has loosened in many places, so buyers have a little more leverage while many sellers with ultra low mortgages feel little urgency to budge on price.
Read Offer Accepted And Now Layoff Fears. What To Do?
Why Deals Fail To Close
- Financing shocks. Employment changes or tighter underwriting can derail approvals.
- True monthly cost surprises. Homeowners insurance, taxes, HOA dues, flood coverage, and required repairs add up.
- Inspection friction. When an inspection reveals issues, buyers ask for meaningful concessions while sellers push back. In markets with more options for buyers, that standoff ends in a cancellation more often.
Smart Moves For Buyers
- Price the full payment before you offer. Ask your lender and insurance agent for written quotes that include principal, interest, taxes, insurance, mortgage insurance if applicable, and HOA dues.
- Protect your outs. Keep financing, appraisal, and inspection contingencies in place and calendar every deadline so your earnest money stays safe. The typical earnest deposit is about 1-3% of the sale price, and you risk it if you cancel outside the contract.
- Use inspections to decide, not to gamble. If repairs are needed, request quotes and negotiate realistically so both sides can move forward.
- Have a Plan B. If you are uneasy about your job or market volatility, consider new construction with rate locks or a longer timeline, or rent for a defined period while you shore up savings.
Smart Moves For Sellers
- Pre list inspections. Ordering reports for the home, roof, structure, and pests can surface issues early, set buyer expectations, and reduce renegotiation. The article estimates a budget near twelve hundred dollars for a full set of reports.
- Be strategic on price and concessions. In many areas buyers have options and will walk if a home feels overpriced relative to condition.
- Secure a backup offer. A signed backup can keep momentum and motivate the first buyer to perform.
- Communicate constantly. Quick responses on documents, access for inspectors and appraisers, and clarity on what stays with the home help keep everyone moving.
Bottom Line
More cancellations do not mean the market is broken. They are a sign that buyers and sellers are re-learning how to negotiate in a slower, more normal environment. Solid prep, clear expectations, and disciplined timelines keep most deals on track.
If you want a second set of eyes on your plan, reach out. I am happy to connect you with a vetted real estate agent in your market who can help you buy or sell with confidence.
