There was a Q&A about this, and the comments brought me to Lyn's really informative post. And I missed it first time around, so in case you did, too, here is a reblog!
Recently I wrote a post about the fall through rate in our Northwest Suburban area. We don't have definitive numbers on how many deals actually fall apart in our MLS. I'd think that would be a good idea but it's just not available to us. Many parts of the country are reporting fall through rates of 30% to 35% from their MLS's in Southern California & the Charlotte, NC areas.
The National Association of Realtors has recently given us a national fall through rate which I decided to focus on for you.
Obviously this is a national survey & shows the main reasons of why a contract does not close. Many reasons are the buyers but then there are also reasons from the seller. Sometimes it's a clear surprise to the seller that they have liens on the property or incorrectly released liens. It all takes time to correct title issues & sometimes it can't be done at all (tax liens).
For agents reporting on their last contract that went into settlement or was terminated over the period August–October 2016, agents indicated that 62% of contracts were settled on time, 32% had delayed settlement, and 7% were terminated.
Having a deal fall through is not really always a bad thing & there could be a variety of reasons. The one that you DON'T WANT to happen is the one where the buyer does not get their financing as promised.
WHAT COULD HAPPEN?
This graph pretty much sums up questions asked by the sellers in most transactions. As much as humanly possible I put out fires & look for loopholes to keep my clients safe & deflect delays. This comes with experience.
WHEN THINGS DO GET DELAYED .....
Among contracts that had a delayed settlement (32%), issues related to obtaining financing, appraisal, and home inspection were the primary causes of the delay.
IS IT TIME TO KILL THE DEAL?
Of the 7% fall through's the number one reason was home inspection issues. I'm sure it is because the seller refused to repair the problem or possibly the buyer had unrealistic expectations from the outcome of the inspection. Either way an agreement could not be reached & the seller chose to put the property back on the market.
Realtor Confidence Index October 2016