Falling Out of Escrow? Here’s How to Protect Your Deal

In today’s real estate market, more contracts are falling through than many buyers and sellers realize. Financing hurdles, inspection issues, and shifting buyer priorities are causing deals to collapse before reaching the closing table. While this can be frustrating, understanding why it’s happening—and how to prepare—can help you stay ahead.

Why Are More Contracts Falling Through?

1. Tighter Lending Standards – Rising interest rates and stricter qualification requirements mean more buyers are struggling to secure financing.

2. Inspection & Appraisal Challenges – Homes not meeting appraisal value or inspection concerns can push buyers to walk away.

3. Buyer Hesitation – In a market where prices and mortgage rates are shifting, some buyers get cold feet.

4. Contingencies – From home sale contingencies to financing clauses, deals can stall if one condition isn’t met.

How Buyers Can Get Ahead

• Get Pre-Approved (Not Just Pre-Qualified): A pre-approval shows sellers you’re serious and financially ready.

• Be Flexible with Contingencies: Consider limiting minor requests or working with your lender and agent to craft stronger offers.

• Have a Backup Plan: If financing falls through, know your options in advance—such as other loan types or co-signers.

How Sellers Can Stay Protected

• Prioritize Qualified Buyers: Look for pre-approved offers rather than just pre-qualified.

• Consider Pre-Listing Inspections: This helps uncover issues before a buyer does, minimizing surprises.

• Stay Flexible but Realistic: Be prepared for negotiations and keep communication open to reduce fallout.

Bottom Line

Contracts falling through can feel like a setback, but with preparation and the right strategy, you can reduce the risk. Whether you’re buying or selling, working with an experienced real estate professional ensures you have guidance, backup options, and confidence throughout the process.