Don't let a "clean" offer turn into a costly cancellation. I’m going over how to protect a deal by verifying financing and eliminating hidden deal-killers.
Why does a deal that looks solid on paper still fall apart before closing? Even a well-priced, well-marketed home can hit unexpected obstacles that stall or kill the transaction.
I learned this the hard way. In my biggest year as a listing agent, I sold 97 homes. It pushed me, challenged me, and showed me exactly what holds deals together and what tears them apart. My role has evolved since then. I now lead, motivate, and hold agents accountable, but I still stay in the field so I know what is happening in real time. When I’m listing and selling with my team, we watch for the same pitfalls that have derailed countless contracts.
Most cancellations come from predictable issues that show up after a home goes under contract. Knowing how to spot them early is what keeps deals from collapsing.
Here are the top reasons transactions fall apart and how to prevent them from happening.
1. Home inspection problems. Inspection issues are the top deal killer. Nationally, about one in four transactions falls apart during inspections, and in some markets, it’s closer to 50%. Buyers have more inventory to pick from, so even small repair lists can push them away.
Use a checklist. Walk the home before listing, handle obvious fixes, and have a handyman ready so your sellers aren’t scrambling. Many cancellations happen because people lack resources, not because repairs are complicated.
Knowing the home’s condition upfront prevents surprises and keeps buyers confident. A small prep investment often saves the deal. Prepared homes survive inspections. Unprepared ones don’t.
“Most deals don’t collapse because of price; they collapse because of surprises.”
2. Financing. A pre-approval letter is not a safety net. Many lenders issue them before reviewing documents, which puts your deal at risk. You can avoid a disaster by making one simple move: call the lender.
Ask whether they have W-2s, bank statements, income verification, and employment history. Ask how long the buyer has been in their current role. Ask whether underwriting has flagged anything. Lenders often admit that agents never call. Don’t be that agent.
Strong verification up front saves you from learning, two weeks in, that financing was never solid.
3. Low appraisal. Overpricing is still a major issue. This is not the market from two years ago. If the price isn’t realistic, buyers won’t write, and you won’t even get to the appraisal stage.
If an appraisal does come in low, be ready. Provide strong comps and clear details on the home’s condition and upgrades. The appraiser doesn’t know the property as you do. Smart pricing and solid prep work cut down appraisal surprises and keep buyers confident in the deal.
4. Panic and cold feet. Fear kills deals. Buyers panic when rates move, layoffs hit the news, or friends talk them out of the purchase. Long timelines and poor communication make it worse.
Set expectations early and keep deadlines tight. Keep the inspection clean. And stay in steady communication with the other agent. If you’re newer in the business, this is where you learn to lead. When a buyer hints at canceling, don’t freeze. Ask questions. What’s worrying you? What would help you feel comfortable moving forward? Your job is to problem-solve, not to pressure. Many deals can be saved simply by listening and guiding.
5. Too many contingencies. Every contingency is an exit door. When an offer is packed with “must sell first,” “subject to relocation,” or extended timelines, you don’t have a solid buyer; you have hurdles.
Counter those terms. Tighten timelines, increase earnest money, and shape the deal into something that can close. The first offer is often your best shot, but it usually needs refining.
Getting under contract is only half the job. Keeping the deal together is where skill shows up. Evaluate inspection risks, verify financing, price with accuracy, manage emotions, and clean up contingencies. These are the habits of top listing agents.
When you take these steps, you reduce your risk of cancellations and set yourself up for a smooth, successful sale.
If you want to boost your contract-to-close rate and sharpen your listing skills, just reach out anytime. You can call or text me at (801) 285-0521 or email me at Justin@JustinUdy.com. Focus on your mindset, improve your skill set, and stay disciplined. Let’s get your next contract to closing.
