How Often Do Closings Fall Through?

House closings fall through surprisingly infrequently, but when they do, it’s usually before the actual closing date—not at the closing table itself. We have also included a Home Closing Checklist! Read on to learn more!

📊 How Often Do Closings Fall Through?

National average: About 3%–5% of pending home sales don’t make it to closing.
In hot markets or cash deals, the fall-through rate can be even lower — often 1–2%.
For deals that reach the final stages (e.g., loan approved, inspections done), the odds of falling through drop to less than 1%.

⚠️ Top Reasons House Closings Fall Through

🏦 1. Financing Problems

Buyer’s mortgage is denied at the last minute.
Credit score drops, new debt is taken on, or job is lost.
Appraisal comes in below purchase price, and buyer can’t cover the gap.

🔍 2. Home Inspection Issues

Buyer discovers major problems (e.g., foundation, roof, mold) and walks away.
Seller refuses to make repairs or negotiate a credit.

📉 3. Appraisal Too Low

If the appraisal is below offer price, the lender won’t finance the full amount.
Buyer may walk if seller won’t lower the price or if they can’t pay the difference.

⚖️ 4. Title or Legal Issues

Outstanding liens, boundary disputes, or unknown heirs delay or kill the deal.

🚪 5. Final Walkthrough Problems

Property is damaged, dirty, or key items are missing (e.g., appliances, fixtures).
Seller hasn’t moved out or honored agreed-upon repairs.

💡 6. Cold Feet or Life Changes

Buyer changes their mind due to nerves, divorce, job loss, or life event.

🔐 Ways to Minimize the Risk of a Fall-Through

For Sellers:

Accept offers with strong pre-approval letters.
Complete a pre-listing inspection or disclose known issues.
Choose buyers with shorter contingency periods.
Request a non-refundable earnest money deposit (within reason).

For Buyers:

Avoid making large financial changes before closing.
Don’t waive contingencies unless you’re absolutely sure.
Stay on top of lender document requests.
Be clear about repair expectations before signing the contract.

✅ Bottom Line:

Most real estate transactions do close, especially once you’re past contingencies. But staying alert during inspections, appraisal, and the financing stage is key to keeping the deal alive.

Home Closing Checklist

1. Financing & Mortgage Approval

Obtain final loan approval (‘Clear to Close’) from your lender.
Verify interest rate, loan terms, and closing disclosure accuracy.
Ensure no major financial changes (e.g., new debts, job change).

2. Funds for Closing

Prepare certified funds or arrange wire transfer for closing.
Double-check wire instructions directly with title/escrow company.
Review the Closing Disclosure to confirm all costs and payments.

3. Final Walkthrough

Verify all agreed repairs are completed with receipts.
Ensure no damage has occurred and appliances are present.
Confirm home is clean and ready for move-in.

4. Insurance, Title & Documents

Secure homeowner’s insurance and provide proof to lender.
Confirm title is clear of liens or unresolved issues.
Review and understand the owner’s title insurance policy.

5. Identification & Paperwork

Bring government-issued photo ID to closing.
Confirm closing location, time, and attendees.
Bring any additional documents required by your lender or attorney.

6. Communication & Contacts

Stay in touch with lender, agent, title officer, and attorney.
Have contact information for utility transfers and moving day.
Confirm how and when keys and garage remotes will be delivered.

7. Final Checks Before Closing

Avoid large purchases or account changes before closing.
Check if any contingencies (inspection, appraisal, financing) need final sign-off.
Verify that the home is vacant and as agreed in the P&S agreement.

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