What Can Delay — or Kill — a Real Estate Deal?

Most buyers and sellers assume that once a contract is signed, the deal is basically done. In reality, the period between “under contract” and “closing day” is where the most risk lives. Many transactions fall apart not because of one big issue — but because of small problems that weren’t managed properly.

Understanding what can delay or completely kill a deal helps both buyers and sellers protect their transaction.

1. Financing Problems

This is the #1 deal killer.

Even if a buyer is pre-approved, things can go wrong:

• Buyer changes jobs mid-contract
  
  
• Large purchases (car, furniture) increase debt
  
  
• Credit score drops
  
  
• Income verification fails
  
  
• Lender discovers undisclosed debt
  
  

Why it matters:
Loan approval is verified again right before closing. A change in financial status can derail everything.

How to avoid it (for buyers):

• Don’t open new credit
  
  
• Don’t change jobs
  
  
• Don’t make large purchases
  
  
• Don’t move money around without explanation
  
  

2. Appraisal Issues

If the home appraises for less than the purchase price:

• The lender will only finance based on appraised value
  
  
• Buyer may need to bring more cash
  
  
• Seller may need to lower price
  
  
• Negotiations can stall
  
  

In competitive markets, appraisal gaps are common — but not every buyer can cover the difference.

Prevention:

• Price homes realistically (for sellers)
  
  
• Buyers should understand local comps before overbidding
  
  

3. Inspection Surprises

Inspections can uncover:

• Roof damage
  
  
• Foundation movement
  
  
• Mold or water intrusion
  
  
• Electrical hazards
  
  
• HVAC failure
  
  

Sometimes the cost of repairs creates conflict.
Sometimes buyers panic over minor issues.

Deals fall apart when:

• Expectations are unrealistic
  
  
• Repair requests are excessive
  
  
• Communication breaks down
  
  

Strategic negotiation matters here.

4. Title Problems

Before closing, the title company ensures the seller legally owns the property and that no hidden claims exist.

Issues can include:

• Unpaid liens
  
  
• Boundary disputes
  
  
• Unknown heirs
  
  
• Clerical errors in previous deeds
  
  

Title issues can delay closing significantly — sometimes weeks.

5. HOA & Condo Document Concerns

In some areas, buyers receive HOA or condo documents after ratification.

Problems that scare buyers:

• High upcoming special assessments
  
  
• Financial instability of HOA
  
  
• Pending litigation
  
  
• Strict rental restrictions
  
  

Buyers may legally back out during review periods.

6. Buyer or Seller Cold Feet

Sometimes it’s not financial — it’s emotional.

Buyers panic thinking:

• “Did I overpay?”
  
  
• “Is this the right house?”
  
  
• “What if prices drop?”
  
  

Sellers panic thinking:

• “What if I can’t find my next home?”
  
  
• “Did I list too low?”
  
  

Emotional decision-making can threaten a deal unless managed calmly and logically.

7. Timeline & Coordination Issues

Delays can also happen due to:

• Missed contingency deadlines
  
  
• Slow lender processing
  
  
• Incomplete paperwork
  
  
• Repair scheduling conflicts
  
  
• Walkthrough disputes
  
  

Small delays stack up quickly if not monitored carefully.

8. Final Walkthrough Conflicts

Right before closing, buyers conduct a final walkthrough.

Common issues:

• Repairs weren’t completed
  
  
• Property damage occurred during move-out
  
  
• Items that were supposed to convey are missing
  
  
• Home wasn’t left in agreed condition
  
  

These disputes can delay settlement.

Final Takeaway

A signed contract does not mean a guaranteed closing. The period between contract and settlement requires coordination, discipline, and professional oversight. Most deals don’t fail because of one massive issue — they fail because small issues weren’t managed correctly.

Strong preparation, clear communication, and steady guidance keep transactions alive.