Why 15% of Home Sales Are Falling Apart—And How to Ensure Yours Doesn't!

The final stretch of selling a house should be a time for celebration, not anxiety. Yet, for a growing number of sellers, deals are collapsing just before the finish line. According to recent data from Redfin, 15% of pending home sales fell through this June—a noticeable increase from the pre-2020 norm of approximately 12%.

The primary culprit? The home inspection.

A joint survey from John Burns Research and Consulting (JBREC) and Keeping Current Matters (KCM) identified inspection-related issues as the number one reason for terminated contracts. In today's market, this makes perfect sense. With higher home prices and mortgage rates stretching buyers' budgets thin, there is little financial or emotional appetite for unexpected, costly repairs. Furthermore, as housing inventory increases, buyers have more options. If an inspection reveals a significant problem, they are more likely to walk away and pursue another property rather than negotiate.

The Proactive Solution: The Pre-Listing Inspection

The key to avoiding this scenario is to identify and address problems before your home even hits the market. A pre-listing inspection is a powerful tool that gives you, the seller, a strategic advantage. It involves hiring a professional inspector before you list, allowing you to uncover the same issues a buyer’s inspector would find.

Here’s how it protects your sale:

• Address Repairs on Your Own Terms: A pre-listing inspection gives you time to handle necessary repairs without the pressure of a buyer's deadline. You can collect multiple quotes and manage the work on your own schedule.

• Prevent Costly Surprises and Renegotiations: By resolving issues upfront, you minimize the risk of a buyer demanding significant price reductions, repair credits, or canceling the deal altogether.

• Build Buyer Confidence: Providing a pre-inspection report shows transparency and care. It demonstrates that your home is well-maintained, building trust and helping you attract serious offers.

While a pre-listing inspection comes with an upfront cost, this modest investment can save you thousands of dollars and immense stress down the road.

Is This Strategy Right for You?

A pre-listing inspection isn't necessary for every home. Your real estate agent is the best resource to help you decide if it’s the right move for your property and local market. If you proceed, your agent will be an invaluable partner, helping you:

• Prioritize repairs that matter most to local buyers.

• Decide which issues to fix and which to simply disclose.

• Navigate your legal disclosure obligations.

The Bottom Line

If you want to ensure a smooth and successful sale, a pre-listing inspection is one of the most effective strategies available today. The question for any seller is simple: Would you rather discover a potential deal-breaker now, when you can manage it proactively, or when you’re already under contract and the clock is ticking?