More Home Deals Are Falling Apart. Here's How to Keep Yours Together.
Buyers have more negotiating power than they've had in years. But NAR's latest Existing-Home Sales report shows a less-talked-about trend: more deals are failing between contract and closing.
In September, 7% of contracts were terminated, up from 6% a year ago. Another 16% of contracts had delayed settlements, up from 14% in August. With rates averaging 7.40% in Freddie Mac's survey last week, budgets are tight and there's less room for surprises.
Getting an offer accepted is only half the job. Here's where deals usually break down, and how to avoid it.
1. Financing that wasn't really ready
A pre-qualification is an estimate based on what you tell a lender. It isn't a commitment. When income, assets or credit get verified after you're in contract, surprises can sink the deal: a gap in employment, self-employment income that calculates lower than expected, a new car loan, or a large unexplained deposit.
The fix: get a fully documented pre-approval before you shop. I review your income, asset and credit documents up front, so the hard questions get answered before you write an offer, not two weeks before closing. Then don't open new credit, change jobs or move large sums of money until you've closed without talking to me first.
2. The appraisal comes in low
When prices flatten, appraisals get more conservative. NAR found that fewer buyers are waiving their appraisal contingency (18% in September, down from 22% in August), which tells you buyers and agents are taking that risk seriously.
The fix: know your options before it happens. A low appraisal can be handled by renegotiating the price, covering the gap with extra cash, or restructuring the loan. A lender who has run those scenarios in advance can turn a deal-breaker into a conversation.
3. Inspection surprises
Repair requests are part of every deal, but big findings (roof, foundation, sewer line) can stall or end a transaction.
The fix: in today's market, a repair credit is often easier for a seller to agree to than a price reduction. Make sure your lender approves how that credit is applied, so it doesn't create a problem at closing.
4. Timelines that are too tight
Short escrows look strong on paper, but rushing appraisal, underwriting and title is exactly how settlements get delayed.
The fix: write a timeline your lender can actually hit. With a fully documented pre-approval, you can offer a shorter escrow with more confidence.
For agents: protect your commission before you write the offer
A failed escrow costs you weeks of work and puts your listing back on the market with a stigma. Before your buyer writes, send me the address and the scenario. I'll confirm the financing is solid, flag any appraisal or credit risks, and give you a fully documented pre-approval letter you can stand behind. Listing agents notice the difference.
Start with a plan, not just a pre-qual
Tell me what you're looking for and I'll send a personalized purchase plan, with no credit pull and no obligation: Get my free purchase plan. Or call or text (949) 910-3943.
Mack Davidson, NMLS #1006831, E Mortgage Capital. Market data from the National Association of REALTORS® September 2026 Existing-Home Sales report. Rates cited are Freddie Mac PMMS averages as of October 8, 2026, not an offer or commitment to lend. Your rate and terms depend on credit, property and loan program. Equal Housing Lender.
