When a home’s status changes to sale pending, it means the seller has accepted the buyer’s offer and both parties are ready to move forward. Hooray!
But even when all signs point to go, sometimes a home sale just never takes off.
While a failed pending sale isn’t common, it can happen, even in a thriving real estate market. Last year, existing-home sales totaled 6.12 million, an increase of 8.5% year over year. However, a number of purchases didn’t pan out. About 6% of all purchase agreements in the last three months of 2021 were terminated, according to the National Association of Realtors®’ Realtors Confidence Index.
So what could possibly be to blame for real estate transactions fizzling out? Below, we take a close look at the top five reasons pending sales fall through. If you can plan ahead, chances are good you can avoid these pitfalls.
1. The buyer changes his mind
Second-guessing yourself is human, especially in situations where you’re spending large sums of money. That’s why something as simple as buyer’s remorse can cause a sale to fall through.
“With multiple offers on properties and homes only staying on the market for a few days, buyers often feel pressured to make a quick decision and can get caught up in the bidding frenzy,” says Kelley Decowski, a real estate agent with Re/Max in Stuart, FL.
Because most buyers include contingencies in their offer that allow them to walk away—and many states offer a due diligence period on contracts—buyers have time to change their mind. But keep in mind that things get much more complicated once the purchase agreement is signed.
