Top 3 Reasons Home Sales Fall Through in Colorado

Have you ever wondered why a home sale can fall apart even after it’s under contract? You’ve done all the work, your house looks great, the buyer seems solid, but somehow, the deal just doesn’t go through. We get asked this question all the time.

Over the years, we’ve learned that there are three main reasons contracts terminate before closing, and knowing them can save you a lot of stress. Let’s walk through each one and share how we keep deals on track.

1. Inspection issues. The number one reason transactions fall apart is the home inspection. About 80% of contracts end because the inspection uncovers something unexpected. Common issues include:

• A bad roof
• A heater that needs repairs
• A leaking hot water valve
• Other problems the seller didn’t even know existed

Even if you’ve already spent money fixing up your home, you might not be financially ready to handle repairs before closing. That’s where having the right vendors can help:

• Trusted contractors who can do the work and get paid at closing
• No upfront costs to worry about, especially if you’re buying another home

We also recommend a pre-listing inspection, which allows us to:

• Catch potential problems before a buyer even makes an offer
• Take care of repairs in advance to avoid surprises that could derail the deal

2. Buyer financing problems. The second most common reason contracts fall apart is buyer financing, and it’s not just about whether the buyer can afford the house. Problems can happen if a buyer:

• Hasn’t been in their job long enough
• Buys a car or furniture before closing
• Suddenly loses their job

We’ve even seen cases where a buyer had to back out because their job required them to live within a certain distance from the office.

To avoid surprises, we always ask for a lender letter when we receive an offer. This letter confirms that the buyer has been pre-approved, not just pre-qualified. It shows that the lender has verified:

• Credit
• Employment
• Bank statements
• Tax returns

We also check the lender’s reputation. Working with a local, reputable lender reduces the risk of last-minute issues and helps keep the transaction on track.

3. Low appraisals. If the appraisal comes in below the contract price, it can put the sale at risk. We handle this by working directly with the appraiser and highlighting features that aren’t easy to quantify but add real value, such as:

• Corner lots
• Cul-de-sac locations
• Beautiful views

Another key step is pricing your home correctly from the start. We consider how an appraiser would view the property to ensure the listing price is realistic. This helps reduce the chance of appraisal issues later in the process.

How to protect your sale. Selling a home can feel stressful, but most deal cancellations are avoidable if you know what to watch for. By anticipating inspection issues, verifying the buyer’s financing, and understanding appraisal considerations, we can help reduce the risk of your contract falling through.

When you take these steps with us, you can sell your home with peace of mind and move toward a smooth, successful closing. You can reach us at (719) 437-7311, email us at derekandmariana@artisangroupco.com, or visit our website, agentsforlife.com. We’re here to guide you every step of the way. Happy house hunting!