What If the Deal Falls Through and the Sale Doesn’t Close?

Lately, I’ve been hearing this question more and more from sellers:

“What if the deal falls through and the sale doesn’t close?”

With so many horror stories circulating about real estate sales falling through, it’s no wonder sellers are anxious. The truth is, while you might hear countless rumors suggesting that this is a common occurrence, most real estate transactions actually go off without a hitch. From the offer table to acceptance, to pending status, and finally to closing, the process is typically smooth, with any bumps ironed out during the contingency period.

But let’s be honest—if you’re a seller, the waiting game until closing day can be nerve-wracking. There’s always that underlying anxiety, wondering if something could go wrong. So, what can you do to protect yourself? It’s true that issues can arise from time to time, and yes, sometimes homes fail to close on the scheduled date. However, the good news is that if there’s a hiccup on closing day, it’s often resolved within a few days, and the deal does close.

Here are a few tips to help ensure a smooth closing:

1. Understand the Role of the Deposit

Every real estate contract requires the buyer to submit a deposit with their offer. Many sellers believe that if the sale doesn’t close, they automatically get to keep the deposit. While it’s true that the seller can sue for the deposit, and in 99.9% of cases, they’ll win, it’s not as straightforward as it seems. The deposit is a sign of good faith, showing the buyer’s intention to see the contract through to closing. The higher the deposit, the less likely the buyer is to walk away from the transaction. A significant deposit can provide you with some peace of mind, knowing that the buyer has a vested interest in ensuring a smooth closing.

2. Don’t Fear Conditional Offers

If a buyer submits an offer with a financing condition, don’t immediately see it as a red flag. In fact, it can be a good thing. This condition allows the buyer to confirm their mortgage for your home, reducing the risk of last-minute financing issues. Once the buyer’s financing is secured, they can waive the condition, bringing you one step closer to a firm sale.

3. Approach Building Inspections with a Clear Mind

Building inspections aren’t meant to scare anyone—they’re there to provide clarity. These inspections help buyers understand the construction and components of the home. Occasionally, buyers may try to use the inspection report to renegotiate the price before firming up the deal. If this happens, take a step back and do your own homework. Assess whether the buyer’s claims are warranted and whether their estimates for repairs are reasonable. This approach ensures that you’re not caught off guard and that you’re negotiating from an informed position.

4. Pick a Closing Date Between Monday and Thursday

Timing is everything. Aim to close on a Monday, Tuesday, Wednesday, or Thursday. Why? If there’s a hiccup on closing day, your lawyer has an extra weekday to resolve the issue before the weekend. Closing on a Friday might seem convenient, but if something goes wrong, you’re stuck waiting until the following week to get things sorted out.

5. Trust Your Realtor and Your Solicitor

Above all else, make sure you’re working with a savvy realtor and a trusted solicitor who are looking out for you throughout the entire selling process. A good realtor has a "spidey sense" and can often detect when a deal might go sour or spot signs of potential problems on closing day. They know the clauses and what to look for in an offer that may be fraudulent. Your realtor and solicitor are your best allies in navigating the complexities of a real estate transaction.

Selling your home is one of the most significant transactions you’ll ever make, and it’s natural to feel a little anxious about what could go wrong. But with the right preparation, a solid understanding of the process, and a trusted team by your side, you can navigate these waters with confidence. And remember, most deals do close smoothly—just keep your eye on the prize and trust the process.

Have you ever experienced a hiccup during closing? I’d love to hear your stories and how you handled it!