When Real Estate Closings Fall Apart: How to Pivot and Protect Your Investment
Real Talk: When a Real Estate Closing Falls Apart (And How to Avoid It)
You might think that once you’re under contract, the hardest part is behind you. But the truth is, a real estate closing can fall through at the last minute. Unfortunately, it happens more often than buyers and sellers realize. In fact, nearly 1 in 7 home deals were cancelled in May 2025, marking the highest percentage in years.
Why? Often it’s due to home inspection deal breakers, sudden financing issues, or a lack of flexibility in negotiation. It’s a tough reminder that a contract doesn’t guarantee a closing. Having a knowledgable REALTOR with the right strategy and support is so important. Otherwise, your deal could become another real estate contract cancellation statistic.
In this post, we’ll break down why deals collapse, how to spot the red flags early, and what you can do to protect yourself from a failed real estate closing.
From Contract to Curveball: A Tulsa Homebuyer’s Story
You’ve been following the Beatty family’s home-buying journey with us if you've been reading this blog the past few weeks. After weeks of prep work, they found a beautiful home in a tight-knit community. The home they liked had a neighborhood pool, sidewalks, and a work-from-home-friendly layout. It checked all the boxes for their family.
We negotiated a fair price. Everyone was thrilled!
Until the inspection.
The roof wouldn’t pass. And the sellers? They weren’t willing to repair or replace it. After weighing their options, the Beattys made a smart call to walk away.
Ironically, I had just walked a seller through this exact scenario. As a trained real estate professional, I advised him to replace the roof. Here’s why:
A roof isn’t a luxury. It’s a necessity.
It’s not the buyer’s job to pay for the roof you used for 18 years.
The next buyer will want an insurable roof, too.
Sometimes a bird in the hand is worth more than two in the bush.
So, mutual release. Back to square one. Let's cover the most common questions I receive after sharing a story like the Beattys.
Why do some real estate closings fall apart even after going under contract?
Several reasons can cause a deal to crash late in the game: inspection issues, appraisal gaps, or sudden financing problems. Sometimes it comes down to one party simply refusing to compromise.
What happened with the Beatty family's home purchase?
They found a great home. But a failing roof during the inspection and a seller unwilling to fix it, led them to walk away. It was a tough call. Ultimately, it was a smart call.
Is it normal for real estate deals to fall through?
Real estate deals fall through much more commonly than most people realize. In May 2025, nearly 15% of home contracts didn’t make it to the finish line. That’s roughly 1 in 7 deals.
Can a home inspection really cancel a deal?
Absolutely. A major issue like a roof, foundation, or plumbing problem can be a deal breaker, especially if the seller won’t repair it. If a needed repair is too expensive for the buyer to take on, the home deal can collapse.
What should buyers do if their contract gets canceled?
Take a deep breath. It’s not the end. Learn from what happened. It's best to refine your priorities, and let your agent guide you toward the next opportunity.
Will I get my earnest money back if I cancel the deal?
If you're within a protected period, like during inspections, yes. That's why your contract’s contingency deadlines matter so much.
Should I still do inspections if homes are selling fast?
Always do a home inspection! A fast-paced market doesn’t make hidden issues disappear. Skipping an inspection might win you a house but at what long-term cost?
Are sellers required to fix home inspection issues?
Not at all. Some do. Some don’t. That’s why having an experienced agent on your side is key to negotiating smart and knowing when to walk away.
How can a good agent help when things go wrong during a real estate closing?
A skilled agent doesn’t just write offers. A skilled agent is an expert problem-solver. Your agent is there to protect your investment and pivot fast when the unexpected happens.
Is backing out of a deal a failure?
Not even close. Sometimes walking away is the best decision you can make. It's redirection, not rejection.
What lessons can buyers take from a collapsed deal?
You’ll walk away wiser. You’ll clarify what you truly want. You’ll be stronger and sharper the next time around.
What happened to the Beattys after walking away?
We pivoted immediately. The very next day, we were back out shopping with a stronger, clearer, and more confident 'priority list' of what really mattered.
FREE GUIDE: {Top 10 Ways Sellers Can Prevent a Real Estate Deal From Falling Through}
FREE GUIDE: {Top 10 Ways Buyers Can Avoid a Real Estate Contract Falling Through}
3-2-1 Recap: What to Know When a Deal Falls Through
3 Things You Learned:
14.6% of contracts fall through. Just because you have a contract accepted doesn't mean the deal is finished.
Inspections can end a deal even late in the game.
A great agent helps you pivot quickly and wisely.
2 Things to Share:
It’s okay to walk away. That’s wisdom, not weakness.
What feels like a loss might be protection in disguise.
1 Thing to Do This Week:
Review your deal-breakers. Make sure your agent has a plan if things don’t go as expected.
Final Thoughts
The road to homeownership isn’t always smooth, but when you work with someone who’s walked the path before, you’re never walking it alone. The Beatty family didn’t lose a house. They avoided a bad investment. And next week, their story continues as we reset, rebound, and make the next move stronger.
In real estate, and in life, it’s not about how many times you fall. It’s about who helps you get back up.
