What’s the #1 Reason Deals Fall Apart After Going Under Contract?

Member since 2015 · 86 posts · 44 votes

I’ve noticed many deals don’t fail at acquisition but later in the process.

From your experience, what’s the most common reason a deal falls apart after going under contract? Financing issues, inspections, appraisals, or something else?

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

9mo

I will play along:

1. dont qualify for loan

2. got cold feet

3. bad inspection seller wont fix.

4. Wife says Hell no.

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9mo
I will play along:
1. dont qualify for loan
2. got cold feet
3. bad inspection seller wont fix.
4. Wife says Hell no.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
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Randall LeBlancBusiness Member
Lender · Walnut Creek Ca · Member since 2021 · 10 posts · 2 votes
9mo
@Jay Hinrichs adding low appraisal into the mix
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Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
9mo
Quote from @Melinda Eilts:

I’ve noticed many deals don’t fail at acquisition but later in the process.

From your experience, what’s the most common reason a deal falls apart after going under contract? Financing issues, inspections, appraisals, or something else?
Overly optimistic pricing is probably number one in some markets, mostly out west.
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Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
9mo
On non creative cookie cutter deals.

1. The Buyer changes their mind over any number of reasons and uses one of the weasel clauses in the contract to back out.

2. Title issues

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