Why Real Estate Deals Fall Through

About 6% of contracts terminate nationally (NAR, mid-2026). Redfin's monthly cancellation tracker runs higher — 16.3% in December 2025, easing to 13.4% by April 2026. In SF's high-cost, contingency-heavy market, expect the higher end.

Here's what actually kills deals:

National Association of REALTORS® | June 2026 REALTORS® Confidence Index Survey

70% — Inspection & Repair Issues The runaway leader. Foundation cracks, old wiring, roof issues, mold — buyer either blows up the repair negotiation or loses their nerve. In SF's older housing stock and TIC buildings, this is the #1 landmine.

28% — Buyer Financing Falls Through Pre-approval ≠ final approval. A new job, big purchase, or credit shift during underwriting can kill the loan mid-escrow.

21% — Buyer's Existing Home Doesn't Sell Home-sale-contingent deals collapse when the buyer's current place doesn't move in time.

15% — Change in Buyer's Financial Situation Job loss, new debt, life happening — lenders re-verify right up to funding.

Quick Tips to Protect Your Deal

Buying:

• Get fully underwritten pre-approval, not just pre-qualification

• No new credit, cars, or job changes mid-escrow

• Request seller disclosures and past inspection reports early

Selling:

• Consider a pre-inspection to remove surprises

• Line up a backup offer

• Negotiate on repairs rather than digging in — keeping the deal beats keeping the credit

The deals that survive aren't the ones with no problems — they're the ones where problems get caught early and both sides still want to close.

Sources: NAR Realtors Confidence Index (June 2026); Redfin cancellation data (Dec 2025, Apr 2026) and agent survey (Sept 2025).