More Home Sales Are Falling Through – Here’s How Sellers Can Stay Ahead
When you’re selling your home, the last thing you want is for the deal to collapse just before closing. Yet, according to recent Redfin data, that’s happening more often these days. The upside? With the right preparation and guidance from a trusted real estate professional, it’s something you can largely prevent.
In June, about 15% of pending home sales were canceled, compared to a pre-2020 average of roughly 12%. While that difference may not seem dramatic, it’s a trend you don’t want to risk facing as a seller.
So, what’s behind these failed contracts? Research from John Burns Research and Consulting (JBREC) and Keeping Current Matters (KCM) reveals that the number one culprit is the home inspection.
Why Inspections Are Triggering More Canceled Contracts
With higher home prices and mortgage rates straining budgets, many buyers are reluctant to take on unexpected repair costs. At the same time, today’s growing inventory means buyers have more choices. If an inspection uncovers significant issues, it’s often easier for them to walk away and pursue another property rather than negotiate fixes.
Additionally, if sellers refuse to address repairs, buyers may decide the expense and effort aren’t worth it. That’s why inspections are playing such a critical role in whether deals hold together.
The Solution: Consider a Pre-Listing Inspection
Fortunately, there’s a proactive way for sellers to get ahead of these problems: a pre-listing inspection. While not required, the National Association of Realtors (NAR) notes it can make a big difference in keeping deals from falling apart.
A pre-listing inspection gives you the chance to:
Fix issues early: By identifying potential problems before buyers see your home, you can handle repairs in advance.
Prevent last-minute renegotiations: Addressing issues upfront reduces the likelihood of price cuts, repair demands, or even canceled contracts once you’re under contract.
Build buyer confidence: A home that’s already inspected and well-maintained sends a strong message to buyers that you’re serious and transparent. This can lead to smoother negotiations and a faster sale.
Spending a few hundred dollars on this step now could save you thousands later.
Is a Pre-Listing Inspection Right for Every Seller?
Not always. Whether this move makes sense depends on your home, your budget, and your local market conditions. That’s why it’s best to lean on your real estate agent for advice. They can help you:
Decide which issues to repair versus disclose
Prioritize fixes based on what matters most to buyers in your area
Navigate disclosure requirements in your state
Final Thoughts
If you want to minimize the risk of your sale falling through, a pre-listing inspection may be a smart strategy. The question is: would you rather discover a costly repair now, while you still have time and flexibility, or later—when you’re already under contract and running against the clock?
