{"id":104488,"date":"2026-07-31T08:17:46","date_gmt":"2026-07-31T15:17:46","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=104488"},"modified":"2026-07-31T08:26:49","modified_gmt":"2026-07-31T15:26:49","slug":"how-often-do-contingent-offers-fall-through","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/how-often-do-contingent-offers-fall-through\/","title":{"rendered":"How Often Do Contingent Offers Fall Through?"},"content":{"rendered":"

Having an offer accepted on a home is a major milestone, but it doesn\u2019t always mean the sale is guaranteed to close. Before the keys are handed over, buyers and sellers still have to navigate inspections, financing, appraisals, and other conditions that can affect whether a deal moves forward.<\/span><\/p>\n

These conditions, known as contingencies, are designed to protect buyers and sellers during the homebuying process. But when a contingency isn\u2019t met – or another issue comes up – a home purchase can fall through.<\/span><\/p>\n

So how often do contingent offers actually fall apart? The answer depends on the market and the circumstances behind the cancellation. Understanding the most common reasons deals fail can help buyers and sellers know what to expect and how to avoid surprises.<\/span><\/p>\n

What is a contingent offer?<\/span><\/h2>\n

A contingent offer is a purchase agreement that moves forward only if specific conditions – known as contingencies – are satisfied.<\/span><\/p>\n

Think of contingencies as protections that allow buyers to complete important due diligence<\/a> before finalizing a purchase. Depending on the terms of the contract, a contingency may allow a buyer to cancel the agreement and recover their earnest money deposit if certain conditions are not met.<\/span><\/p>\n

For example, imagine you\u2019re buying a home built in the 1940s. You make your offer contingent on an electrical inspection because older knob-and-tube wiring can pose safety hazards. If the home inspector confirms the system is outdated and the seller refuses to fix it or offer a credit, the inspection contingency allows you to cancel the contract without financial penalty.<\/span><\/p>\n

How often do contingent offers fall through?<\/span><\/h2>\n

A contingent offer can fall through for many reasons, including inspection issues, financing problems, appraisal concerns, or a buyer\u2019s changing circumstances. How often this happens depends on the market and the specific challenges that come up during the closing process.<\/span><\/p>\n

While Redfin\u2019s data does not track contingent offers specifically, it does track pending home sales that fall out of contract before closing. This provides insight into how often home purchases that were already under contract fail to reach the finish line.<\/span><\/p>\n

According to<\/span> Redfin\u2019s Home Purchase Cancellation Data<\/span><\/a>, 13.6% of pending U.S. home sales fell out of contract before closing, down slightly from the previous year. This means that roughly 1 in 7 pending home sales did not make it to the closing table.<\/span><\/p>\n

Market conditions can also influence how often deals fall through. When mortgage rates rise, affordability becomes more challenging, or buyers have more homes to choose from, buyers may feel more comfortable walking away from a deal or negotiating after issues come up during the closing process.<\/span><\/p>\n

Top reasons contingent offers and home sales fall through<\/span><\/h2>\n

Contingencies are one of the main ways buyers can exit a contract when issues arise before closing. However, not every canceled home sale is tied to a contingency.<\/span><\/p>\n

According to a <\/span>Redfin survey<\/span><\/a> of 443 Redfin real estate agents who handled cancellations, the top reasons home-purchase agreements fell apart were:<\/span><\/p>\n