When your home goes under contract, it can feel like the hard part is over. But “pending” doesn’t mean guaranteed. Nationally, 6% of deals unravel before closing day. Sellers looking to avoid potential pitfalls often ask, “Why do pending home sales fall through?” We spoke with Jamie McMartin, a top-rated HomeLight Elite real estate agent in Texas with more than 18 years of experience. She shares the top reasons a home sale may come to a halt, and how you can take proactive steps to cross the closing-day finish line. Even if a buyer is pre-approved, their loan can still be denied before closing. Lenders often re-check employment, income, and credit right up to the end. A job change, new debt, or unexpected financial setback can derail approval. “In the Houston area, about 15% of pending home sales have fallen through in the last month, which is a record since 2017,” McMartin says. “One reason we’re seeing is finance — buyers can lose their approval after the fact.” Sellers should look for buyers with strong pre-approval letters from reputable lenders — not just pre-qualification. Asking your agent to vet the buyer’s financing early can save you stress later. Once the inspection report comes in, buyers may request repairs, a price reduction, or credits — or they might walk away entirely if the problems are significant. “With the high inventory that we’re seeing, buyers are very easily turned away when they see things like foundation issues, mold, roof damage, or other expensive repairs pop up,” McMartin says. “They don’t want to be in a money pit. So with all the inventory on the market right now, we’re seeing buyers be less tolerant of those kinds of issues with the property.” Top agents like McMartin recommend considering a pre-listing inspection to uncover big-ticket issues in advance. This approach can prevent tense negotiations mid-transaction. If the appraisal is lower than the agreed-upon price, the buyer’s lender will typically only approve a loan based on that lower value. Unless the buyer can make up the difference in cash or you’re willing to reduce the price, the deal may collapse. McMartin, who works with 82% more single-family homes than the average Houston agent, says sellers who insist on pricing high in the current market will see their home sit unsold, or face delays or a canceled deal after a low appraisal. “Sellers need to be realistic and listen to their agents, whether it be on pricing or what to repair.” According to data from the National Association of Realtors (NAR), it’s estimated that 6% of contracts are delayed due to appraisal issues. When a buyer’s offer is contingent on selling their own home, your deal can be at the mercy of another transaction. If their home sale collapses, they may no longer have the funds or lender approval to buy yours. To avoid this potential pitfall, sellers should work closely with their agent to vet each offer and weigh the pros and cons. In some cases, sellers might prefer offers without home sale contingencies — even if they’re slightly lower — to reduce risk. An agent’s role is to manage deadlines, documents, and communication between all parties. If the buyer’s or seller’s agent is inexperienced or disorganized, critical steps can be missed, like scheduling inspections, sending disclosures, or meeting contract timelines, which can put the deal at risk. “An experienced agent who is savvy and knows how to operate their business like a business can definitely have an influence in keeping deals together,” McMartin says. “But if you have an inexperienced agent or somebody who is part-time — not in it for the long haul — they won’t know how to operate in a market like this. That’s when things can fall through.”1. Financing falls through
2. Home inspection reveals major issues
3. Appraisal comes in low
4. Buyer’s home sale falls through
5. Problems caused by an inexperienced agent
