You’ve finally found your dream home and your offer has been accepted. Congratulations — you are almost there, but it’s not time to celebrate just yet. During the real estate process, the purchase or sale of a home goes into a “pending” status after an offer has been accepted and before the sale has closed. While the vast majority of home sales close smoothly, it’s important to prepare yourself for the possibility that your deal could fall through.
Financing Falls Through
One of the most common reasons a pending sale collapses is that the buyer’s financing fails to come through. This can happen if the buyer’s financial situation changes (job loss, new debt, large purchases), if the property doesn’t appraise at the agreed-upon price, or if the lender identifies issues during underwriting. Buyers can minimize this risk by getting fully pre-approved (not just pre-qualified), avoiding large purchases or new credit during the transaction, and working with a reputable lender.
Home Inspection Issues
A home inspection that uncovers significant problems can derail a sale if buyer and seller can’t reach agreement on repairs or price adjustments. Sellers can reduce this risk by addressing known issues before listing. Buyers should approach inspection results practically — request repairs or credits for legitimate safety and structural issues, not cosmetic items.
Appraisal Gaps
If the home appraises below the contract price, the lender will only fund the appraised amount, leaving a gap the buyer must cover in cash or renegotiate with the seller. In competitive markets, buyers sometimes agree to cover appraisal gaps in advance as part of their offer. Make sure you understand this risk before waiving an appraisal contingency.
Title Issues
Occasionally, title searches reveal issues such as unpaid liens, boundary disputes, or errors in public records. These can take time to resolve and in some cases may cause a deal to fall through entirely. This is why purchasing title insurance is so important — it protects you from issues that may not have been discoverable at the time of closing.
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