H
omebuyers often experience cold feet when putting down a large amount of money, but sellers backing out of deals is less common. However, it does happen, and real estate experts have identified the most common reasons why sellers might back out.
One reason is if the sale is contingent on the seller's newly built home being completed by a specific date. If this deadline passes, the deal can fall apart, as Andrew Fortune, a realtor with Great Colorado Homes, experienced in one of his deals. Buyers should be aware of any construction timelines and potential delays.
Another common reason sellers back out is due to financing or timing issues. Many sellers are also buyers trying to navigate their next home purchase. If their new home contract falls through, they may cancel the sale to avoid being temporarily homeless, as Tammie Carter at Engel & Völkers Atlanta explained. Buyers should ask about any potential financing or timing issues upfront.
Sellers may also back out if a buyer asks for repairs after an inspection. This can be a way for sellers to avoid leaving a paper trail, according to Fortune. If a seller ghosts you after submitting an inspection report, this might be the reason why.
Financial burden is another main reason sellers back out. Many sellers don't realize they're responsible for both sides of agent commissions and closing fees, as Brett Johnson, a licensed real estate agent with New Era Home Buyers, pointed out. Sellers may get cold feet due to the final numbers being a "gut punch."
Cold feet are a common human experience when facing big changes, especially if sellers have lived in their home for a long time. They might agree to a sale before they're emotionally ready to let go.
Unrealistic expectations can also lead to deals falling apart. Sellers may get a fair offer but try to push for more mid-contract after hearing about higher prices from neighbors or on Zillow, as Johnson said. This usually backfires.
Multiple parties being required to agree on the sale can also cause problems, such as in probate or co-owned properties. If one person changes their mind or stalls paperwork, the whole deal can fall apart. Buyers should ask their real estate agents about any potential issues with multiple parties involved.
Finally, better offers may come in after a seller accepts another contract, according to Carter. Some of these offers may contain fewer contingencies and even a higher sales price, tempting sellers to back out or find reasons to do so. Buyers can work with their real estate agent to ask leading questions that give them a sense of the seller's likelihood to commit to their deal.
