Selling your home can be exciting, but there’s one possibility that makes almost every seller nervous: What if the deal falls apart right before closing?
After preparing your home, going through showings, negotiating an offer, completing inspections, and waiting through escrow, the last thing you want is to start over.
Fortunately, that isn’t how most transactions end.
According to the latest data from Redfin, only about 1 in 7 pending home sales are falling through. That means the vast majority of transactions are still making it all the way to closing.
And that’s important perspective for homeowners thinking about selling in Greater Palm Springs and the Coachella Valley, including Palm Springs, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, Cathedral City, and Indio.
Today’s buyers are navigating mortgage rates and home prices that require serious financial planning. In many cases, they’re buying because of a significant life event or lifestyle decision – relocation, retirement, downsizing, a growing family, or simply wanting a different type of home.
In other words, serious buyers generally want the transaction to close just as much as sellers do.
But deals can still fall apart.
The good news is that one of the biggest risks is also something sellers may be able to address before their home ever hits the market.
Why Some Home Sales Fall Apart Before Closing
A Redfin survey highlights some of the most common reasons pending home sales don't make it to closing.
Here’s what each one means for sellers.
1. Inspection or Repair Issues
This is the big one.
Once a buyer has a home inspection, previously unknown issues may come to light. That could include problems involving the roof, plumbing, electrical system, HVAC equipment, foundation, pool equipment, or other components of the property.
Depending on the purchase agreement and the buyer's contingencies, the buyer may ask the seller to:
- Complete repairs
- Provide a credit toward repairs
- Reduce the purchase price
- Renegotiate other terms of the transaction
If the buyer and seller can't reach an agreement, the transaction may be put at risk.
This can be particularly important in the Greater Palm Springs real estate market, where buyers may be evaluating features that are especially relevant to desert properties – including air-conditioning systems, pools and spas, roofs, solar systems, older electrical panels, irrigation systems, and deferred maintenance caused by prolonged heat exposure.
Understanding those issues before negotiations begin can help sellers make better decisions.
2. The Buyer’s Financing Falls Through
A mortgage pre-approval is important, but it isn't the same thing as final loan approval.
The buyer’s lender still has to complete underwriting, verify financial information, review the appraisal, and satisfy the lender's conditions before funding the loan.
If financing doesn't come together, the transaction may not be able to close.
That's why sellers shouldn't evaluate an offer based solely on price.
The strength of the buyer's financing matters too.
3. The Buyer’s Current Home Doesn’t Sell
Some buyers need proceeds from the sale of their existing home before they can purchase their next property.
That creates another moving part.
If their existing home doesn't sell according to schedule, it could delay your closing or potentially jeopardize the transaction depending on how the offer is structured.
For a seller, this is why understanding every contingency attached to an offer is so important.
A higher-priced offer isn't necessarily the strongest offer if it comes with significantly more uncertainty.
4. The Buyer’s Financial Situation Changes
A buyer's finances can change between pre-approval and closing.
A new job, loss of employment, significant purchase, newly opened credit account, additional debt, or another financial change can affect the buyer's mortgage qualification.
Some of these circumstances are completely outside the seller's control.
But that doesn't mean sellers are powerless.
Where Your Real Estate Agent Makes the Difference
You can't control everything that happens during escrow.
You can't guarantee that a buyer's lender will approve their loan.
And you can't control how quickly another property sells if the buyer's purchase depends on it.
But there are steps you can take to reduce unnecessary surprises.
According to Zillow, two strategies sellers should consider are evaluating the complete strength of an offer and, when appropriate, completing a pre-listing inspection.
Consider a Pre-Listing Inspection
A pre-listing inspection is an inspection completed before your home goes on the market, rather than waiting for the buyer to conduct one after you're already under contract.
The idea is simple:
Find potential problems before the buyer does.
If an inspection uncovers an issue, you have time to decide how you want to handle it.
You might repair it.
You might obtain estimates.
Or you might decide to disclose the issue and price the property accordingly.
The advantage is preparation.
Instead of discovering a significant problem in the middle of escrow – when timelines are tight and emotions may already be elevated – you can evaluate your options before negotiations begin.
Your real estate agent can help determine which issues may be worth addressing and which ones may be better handled through disclosure or negotiation.
A pre-listing inspection won't make sense for every property or every seller, but in the right situation, it can remove uncertainty before a buyer ever writes an offer.
Look Beyond the Highest Offer
When multiple offers come in, it's tempting to immediately focus on one number:
The purchase price.
But the highest offer isn't always the best offer.
Your agent should help you evaluate the entire package, including:
- Purchase price
- Financing and down payment
- Proof of funds
- Loan, appraisal, and inspection contingencies
- Requested seller concessions
- Closing timeline
- Whether the purchase depends on the buyer selling another property
- Other terms that could affect the probability of closing
Sometimes an offer that's slightly lower but has stronger financing and fewer contingencies may provide greater certainty than an offer with a higher price and significantly more conditions.
The goal isn't simply to get your home under contract.
The goal is to get it closed.
Why Preparation Matters in the Greater Palm Springs Market
Every home and transaction is different, and that's particularly true throughout the Coachella Valley.
A mid-century home in Palm Springs may present different inspection considerations than a newer home in Palm Desert.
A luxury estate in Rancho Mirage or Indian Wells may involve more complex systems, extensive pool equipment, smart-home technology, solar, multiple HVAC systems, or other features.
A property inside a La Quinta or Palm Desert country club may involve HOA documentation and other community-specific considerations.
That's why the best strategy should be based on the actual property you're selling – not generic advice.
Before listing, it's worth identifying potential issues, reviewing the home's condition, determining what buyers in your price range expect, and deciding how you'll approach negotiations once an offer arrives.
Sometimes the smartest move is staying one step ahead.
Bottom Line
Most pending home sales still make it to closing.
According to Redfin, only about 1 in 7 pending sales are falling through, which means the overwhelming majority successfully reach the finish line.
But sellers can still improve their odds.
Preparing your home carefully, considering whether a pre-listing inspection makes sense, understanding potential repair issues, and evaluating the complete strength of each offer can help reduce surprises once you're in escrow.
If you're considering selling a home in Palm Springs, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, Cathedral City, Indio, or elsewhere in Greater Palm Springs, let's talk before you list.
At Desert Cities Home, we can help you evaluate your property, identify potential issues before they become problems, and build a strategy designed not just to get your home under contract – but to get it successfully closed.
Mike Z. Haque
eXp Realty DRE#01745484
(c) 760-808-5995
