Why Are Buyers Backing Out of Real Estate Deals?

By Danae Aballi

Danae Aballi is a long-time real estate industry veteran. She has worked in various positions in the industry having grown from an independent real estate agent to running a team of 5 top producing agents.

It’s official: We are starting to see cancellations and escrows canceling more than ever here in Orange County, California. It’s actually happening all around the country. But why are these homes showing up as back on the market? As an agent with 20 years of experience in this business, I have seen escrows fall apart for different reasons, some due to market influences and some due to the high emotions involved in real estate transactions. Today, I’m going to give you the top three reasons that deals tend to fall apart.

1. Buyer’s remorse. Buyers simply change their minds or experience buyer’s remorse. Buyers feel like they are paying top dollar, especially in today’s market. They go home, sleep on it, and start to panic about whether they really want to commit to such a high payment. They question if now is the right time to buy and if they want to purchase in these economic conditions.

Often, buyer’s remorse can make a deal go sideways. I have thoughts and tips to guide you, whether you’re on the buy side or the sell side. Before you open escrow with a buyer, let’s determine if they are really committed to the deal.

2. Inspection issues. The No. 1 reason why housing transactions fall apart is inspection issues. I recommend my sellers get a pre-inspection before opening escrow. This way, the buyer already has all the information upfront. It’s not fair to a buyer to put down a deposit, read all the disclosures, and then discover significant issues with the house, like bad electrical, plumbing, or roofing, after sending their money. By providing this report upfront, buyers have time to digest the information and feel comfortable, allowing you to sell your property as-is or negotiate ahead of time.

3. Drawn-out negotiations. My philosophy is that time kills deals. The longer you spend negotiating, the more chances you give your buyer to walk. When you open escrow, the goal is to complete the process as quickly as possible.

One major delay comes from the appraisal and loan processes. If a buyer provides a document indicating they’ve been pre-approved just by filling out an online form, that means very little. I look for buyers who have been fully underwritten and vetted by the loan company’s underwriting team, ensuring they are well along in the loan process.

If you’re thinking of selling in the near future, you can still get a good deal; you just need to plan ahead. I’m an expert at helping you strategize the easiest, most stress-free way to reach the finish line.

Please call me for a consultation about whether you’re on the buy side or the sell side. I love helping you explore options and opportunities tailored to your specific needs. My contact details are (949) 216-8565 or danae@danaeaballi.com. I look forward to hearing from you!