Top Reasons Buyers Cancel a Home Sale

By Shawn Hermosillo

Shawn Hermosillo, founder of Hermosillo Real Estate Group (HRE), is a Sonoma County native with deep roots in the community and a passion for real estate.

Getting an offer on your home is a big moment. It feels like the finish line is finally in sight. But here’s the truth: an accepted contract doesn’t guarantee a smooth path to closing.

Nearly one in four real estate deals falls apart before reaching the settlement table. That means thousands of sellers each year find themselves starting over after weeks of work and anticipation.

Why does this happen, and how can you avoid becoming part of that statistic? Let’s look at the five most common reasons buyers cancel a home sale and, more importantly, what you can do to keep your deal on track.

1. Home inspection issues. For most buyers, the home inspection is the first real stress test. They want reassurance that they’re making a sound investment, not inheriting expensive problems.

If the inspector uncovers roof damage, foundation cracks, or aging systems, buyers may react by asking for steep repairs or walking away entirely. Even small issues can snowball into doubt if they’re not addressed openly.

I recommend a pre-listing inspection. It gives you a clear picture of your home’s condition and allows you to either make repairs or set expectations in advance. By being proactive, you reduce the chances of last-minute surprises derailing your deal.

2. Financing falls through. It’s easy to assume that once a buyer is pre-approved, their loan is safe. Unfortunately, financing can fall through even late in the process. A job change, a new car loan, or an underwriting red flag can undo weeks of progress.

When financing fails, sellers are left scrambling, often after already pulling their home off the market. To avoid this, I recommend requiring strong pre-approval letters from reputable lenders. Ask your agent to vet buyer qualifications carefully and keep contingency timelines short. The goal isn’t just to attract buyers, but to attract buyers who are ready and able to close.

3. Low appraisal. Appraisals can create another stumbling block. If an appraiser values your home below the contract price, the lender won’t approve the full loan amount. The buyer then has to cover the gap in cash, or you, as the seller, must agree to lower your price.

When neither side can bridge the difference, the deal may collapse. What you can do is price your home realistically from the start. Overpricing often leads to appraisal gaps and stressful renegotiations. A competitive, data-driven list price helps attract serious buyers who can follow through.

4. Buyers see greener grass elsewhere. In today’s market, buyers have choices, and sometimes, they get distracted by new listings. This is harder to control, but consistent communication can make a huge difference. Quick responses and steady updates help keep buyers engaged and confident in their decision to buy your home.

Getting under contract is exciting, but it’s only half the journey. The real win is making it to the closing table with confidence and minimal stress. If you’re thinking of selling, preparation is everything. Address potential inspection issues, evaluate buyer financing carefully, price strategically, and look closely at the terms of each offer, not just the numbers.

When you take these steps, you reduce your risk of cancellations and set yourself up for a smooth, successful sale.

If you’re planning to sell, let’s connect. Reach out to (707) 280-5040 or send an email to shawn@hermosillogroup.com, I’ll help you prepare your home, review offers wisely, and avoid the most common deal-breakers that derail a sale. Let’s make sure your next contract gets to the finish line.