When an offer is accepted by both parties it is just the beginning. You can certainly be excited, but the deal is far from complete. When the transaction is funded and recorded then you can consider it a done deal. There is a lot that can happen before closing and a lot of times the deal can fall through. So why does this happen? Let's take a look at 5 of the main reasons a transaction can fall through.

5 Reasons Why A Real Estate Transaction Falls Through5 Reasons Why A Real Estate Transaction Falls Through


A home inspection is a pivotal part of the home-buying process and can make or break a deal. The home inspection is the next big step after an offer is accepted. This is where the new buyer understands the full picture of a home's structural integrity. In some cases, there are things you don't see that are important for a new owner to be aware of. Any property defects will be noted by the home inspector so that the buyer can determine what they will be fixed as a part of buying the home, or ask for financial credits from the seller. This is done in a request for repairs or credit form. This is a big part of negotiations in the transaction. Once there is an agreement, the inspection contingency is lifted, if there is no agreement, then the deal will fall through.


The financing aspect of a transaction is how the buyer will pay for the home. The mortgage process can be a bit complicated and there are a lot of steps a buyer has to follow. Pre-qualified or pre-approved buyers have a bit of an easier time because they have previously done some of the processes. If for some reason the financing contingency is lifted and the buyer ends up not getting the funding then the transaction will fall through and the buyer can lose their deposit depending on the timeline in which this occurs.


Appraisals are very important if the buyer is using a loan for the purchase. The loan will be contingent on whether or not the property is appraised at the correct value. If there is an issue with this and the buyer cannot make up the difference in cash, then the transaction will fall through.

Title Issues or Liens

Title companies research any potential title or lease issues with the property in the transaction. They are also who issue the title insurance to the new owner. This is important because when the property is transferred to the buyer it means the home is free of any liens. If the title company cannot grant this then they cannot approve title insurance and then the transaction will fall through.

Buyer/Seller Remorse

While you buy or sell a home you can experience a lot of emotions. Buyers can feel rushed or stuck if they are in a hot market and need to make quick decisions. Sellers can feel emotionally attached and sad to be selling the home because of the memories connected to it. Both sides of this are considered remorse, Experienced agents are aware of the emotional impact buying or selling can have and are there to help you navigate the process and make the best decisions you can for you and your family. This is rare, but emotions can get the best of people and in some cases, it can lead to the buyer or seller backing out of a transaction.

In Conclusion

When you work with an experienced agent you can avoid a lot of these potential issues. When you hire your agent, you hire a team of experts that the trust to complete the necessary work for you to have a smooth transaction. For more information on buying or selling a home in Wheat Ridge and the Denver area, contact us.