Keith Davis, REALTOR® – Red Door Agency

When buying a home, a signed purchase agreement might feel like the finish line but in reality, it’s just the beginning.

Buyers and their agents still have plenty to do behind the scenes to keep the ball rolling and ensure the deal makes it all the way to closing. In fact, just over 53,000 home purchase agreements across the country fell through in September, representing 15% of all homes that went under contract during that month a notable rise from 13.6% at the same time last year, according to a Redfin analysis of MLS pending-sales data.

Buyers Backing Out of Deals More Often

Across the nation, a growing number of buyers are walking away from home purchases often because neither side is willing to budge on key issues like concessions or repair requests, according to a recent report from Redfin.

“Even after an offer is accepted and a contract is signed, a home sale can still collapse. The key reasons include a buyer’s financing falling through, unmet contingencies, inspection findings, low appraisals, title problems, or the buyer simply getting cold feet, according to bank rate.

What Is a Real Estate Purchase Agreement?

A real estate purchase agreement  sometimes called a sales contract is a legally binding document that spells out the terms and conditions of a home sale. It becomes official only when both the buyer and seller sign it. Essentially, it serves as the buyer’s formal offer to purchase the property, with all negotiated details included.

Common Contingencies in a Home Purchase Agreement

Contingencies serve as built-in protections for buyers, says Emory. “They give you the flexibility to withdraw or renegotiate if an important condition isn’t met.” Below are some of the most common examples:

• Home Inspection Contingency: Lets the buyer hire a professional inspector to evaluate the property. If significant issues — such as structural, plumbing, or electrical problems — are found, the buyer can ask for repairs, request a price reduction, or walk away from the deal.
• Appraisal Contingency: Protects the buyer if the home’s appraised value is lower than the agreed purchase price. The buyer may renegotiate or cancel the contract.
• Financing Contingency: Allows the buyer to exit the deal if they’re unable to secure a mortgage or if the loan terms change unexpectedly.
• Home Sale Contingency: Gives the buyer the right to cancel the purchase if they can’t sell their current home in time.
• Title Contingency: Ensures the property’s title is clear of any ownership disputes or unpaid liens before closing. If the title report reveals problems, the buyer can reconsider the purchase.

Contracts for home purchases typically close within 30 to 60 days, though the exact timeline can vary depending on financing, inspections, and negotiations. During this period, buyers must complete key steps such as resolving contingencies listed in the purchase agreement, meeting all contractual deadlines, securing financing, and ensuring all paperwork is properly handled. According to Rocket Mortgage, most home sales close within this timeframe, while Freddie Mac notes that clear communication and timely action are essential to keep the process moving smoothly.

A skilled real estate agent helps buyers stay organized and on schedule. “Your agent will guide you through the timelines and make sure you don’t miss critical deadlines, like scheduling inspections, meeting with your lender, and submitting your earnest money on time,” says April Emory, a real estate professional with Emory’s Rock Realty. Agents also play a key role in problem-solving: if an issue arises, they can help create a plan of action and advocate on your behalf. As ListedKit explains, staying proactive about each step in the transaction is vital for avoiding delays and ensuring a successful closing.

8 Tips to Keep Your Real Estate Purchase Agreement on Track

Buying a home can be exciting, but first-time buyers often make small mistakes that can lead to big setbacks. Here are eight smart ways to keep your deal on course and make sure your closing stays on schedule:

Tip 1: Partner With a Trusted Real Estate Agent

Whether you’re referred by a friend or find one yourself, choosing an experienced real estate agent is key. Your agent will handle negotiations, guide you through inspections and financing, and keep you on top of critical deadlines to help your contract stay solid.

Tip 2: Get Pre-approved Before You Shop

Before making an offer, talk with a lender and get preapproved. This step verifies your financial readiness and helps you understand exactly how much home you can afford , avoiding unpleasant surprises when it’s time to finalize your mortgage.

Tip 3: Track Every Contract Deadline

Your purchase agreement includes strict time frames for things like inspections, financing approval, and closing. Staying organized and meeting each deadline can prevent delays that might cause your contract to expire or the seller to walk away.

Tip 4: Compare Mortgage Offers

Don’t settle for the first lender you speak with. Getting quotes from several mortgage companies could save you thousands over the life of your loan. LendingTree found that comparing offers can save borrowers an average of $212 per month, or roughly $2,500 per year.

Tip 5: Explore All Loan Options

Government-backed loans, such as FHA or VA loans, and first-time homebuyer programs can make qualifying easier and reduce your upfront costs. A good lender or agent can walk you through the best programs for your situation.

Tip 6: Avoid Major Financial Moves

Hold off on opening new credit accounts, financing a car, or making large purchases until after your home has closed. Even small financial changes can lower your credit score or alter your debt-to-income ratio, potentially jeopardizing your loan approval.

Tip 7: Plan for More Than the Down Payment

Don’t forget the extra costs that come with homeownership. Budget for closing costs (typically 2–5% of the purchase price), earnest money, property taxes, and HOA fees, if applicable. As Lawrence Yun, chief economist at the National Association of REALTORS®, advises:

“Things in homes always break down, so people should put aside a budget for anything that will need fixing. A good rule of thumb is to anticipate 1–2% of the home’s price for maintenance.”

Tip 8: Keep Communication Open With Your Agent

Never hesitate to ask questions or request clarification. Consistent, clear communication with your agent helps prevent confusion and ensures each step, from inspections to final walkthrough, goes as planned.

Why Some Home Sales Fall Apart After the Purchase Agreement Is Signed

Even after a buyer and seller sign a legally binding purchase agreement, not every deal makes it to the closing table. According to the April 2025 REALTORS® Confidence Index Survey, about 7% of home sales were terminated before closing, while 16% experienced delays. The good news? Nearly 95% of transactions still close successfully, especially when buyers work closely with their agent to navigate challenges that can arise.

The Most Common Deal Breakers

Cari McGee, managing broker at RE/MAX Northwest in Kennewick, Washington, says inspection issues are among the biggest reasons contracts fall through. “Sometimes a seller refuses to make repairs, or buyers ask for more than what’s reasonable,” she explains. “I always emphasize the points in a transaction where the sale could fall apart but I also assure my clients that I’ll guide them through whatever comes up.”

Below are some of the most frequent reasons a sale might not close and what buyers and sellers can do about them.

1. The Appraisal Comes In Low

When the appraised value is lower than the agreed-upon price, the lender will only finance up to that appraised amount.

Options:

• Renegotiate the price to match the appraisal.
• Pay the difference in cash to the lender.
• Ask your agent to provide comparable sales and request a second appraisal.
• If you have an appraisal contingency, you can walk away without penalty.

2. The Home Inspection Reveals Major Issues

Significant problems with the foundation, roof, plumbing, or electrical systems can cause deals to stall.

Options:

• Ask the seller to complete necessary repairs.
• Negotiate a price reduction based on repair estimates.
• Cancel the deal under your inspection contingency if the issues are too severe.

3. The Buyer’s Financing Falls Through

Unexpected job loss, a credit change, or higher interest rates can derail financing.

Options:

• Request more time from the seller to secure funding.
• Explore FHA or other government-backed loans with more flexible criteria.
• Add a co-signer to strengthen your application.
• Use your financing contingency to withdraw without penalty.

4. Title Problems Surface

A title search might reveal liens, ownership disputes, or unpaid property taxes.

Options:

• Ask the seller to resolve any liens before closing.
• Use title insurance to protect against unexpected ownership claims.
• Cancel the contract if the title cannot be cleared.

5. The Buyer Changes Their Mind

Sometimes life happens a new job, a better house, or second thoughts.

Options:

• Check whether an existing contingency (like a home-sale clause) allows you to cancel without penalty.
• If not, you may forfeit your earnest money deposit.

6. The Seller Backs Out

A seller might also get cold feet or face unexpected hardships.

Options:

• Request a refund of your earnest money deposit.
• Consider legal options such as compensation for losses or “specific performance” to enforce the contract though that can be costly and time-consuming.

Staying the Course

While roadblocks can occur, most sales still close successfully. Having a skilled real estate agent by your side makes a huge difference. “Your agent knows your contract backward and forward,” says McGee. “They’ll keep you on track with deadlines and next steps all the way to your new front door.”

Source:

Redfin News. “Sellers Are Getting Ghosted: 15% of Homebuying Contracts Were Canceled in September.” Redfin, 18 Oct. 2025, https://www.redfin.com/news/press-releases/sellers-are-getting-ghosted-15-of-homebuying-contracts-were-canceled-in-september/

Taylor, Mia. “6 Reasons Your Real Estate Deal Might Fall Through.” Bankrate, 20 March 2023, https://www.bankrate.com/real-estate/top-reasons-home-sales-fall-through/

Rocket Mortgage. “How Long Does It Take to Close on a House?” Rocket Mortgage, 10 Jan. 2024, https://www.rocketmortgage.com/learn/time-to-close-on-a-house

Freddie Mac. “Understanding the Homebuying Timeline.” My Home by Freddie Mac, 2024, https://myhome.freddiemac.com/blog/homebuying/understanding-homebuying-timeline

ListedKit. “Navigating Tight Timelines in Real Estate Transactions.” ListedKit, 2024, https://listedkit.com/tight-real-estate-transaction-timelines/

Yun, Lawrence. “Chief Economist Commentary.” National Association of REALTORS®, 2023, https://www.nar.realtor/research-and-statistics/economists-outlook

LendingTree. “How Shopping for a Mortgage Can Save You Thousands.” LendingTree, 2024, https://www.lendingtree.com/home/mortgage/mortgage-rate-shopping/.

National Association of REALTORS®. REALTORS® Confidence Index Survey: April 2025. NAR Research, Apr. 2025, https://www.nar.realtor/research-and-statistics

McGee, Cari, quoted in Taylor, Mia. “Why Do Sales Fall Through After a Real Estate Purchase Agreement Is Signed?” REALTOR® Magazine, Apr. 2025, https://magazine.realtor

Keith Davis, REALTOR®, affiliated with Red Door Agency, licensed in Virginia & Tennessee.
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