Top 5 Reasons Buyers Cancel a Home Sale in Nashville

Nashville home sales are falling out of contract at a higher rate than usual. These are the five common reasons and what sellers can do to stay ahead of them.

A couple of weeks ago, something happened in our own neighborhood of Crieve Hall that tells you everything about this market. Multiple houses went under contract within the same week, and everyone was excited. Then, one by one, every single one of those deals fell apart. All of them. That's exactly why we talk about this with our sellers before they ever go on the market.

A home sale is never done until the money hits your account. You can have a signed contract and start dreaming about your next chapter, but until you're at that closing table with funds in your hands, something can still happen. 

Contract cancellations are climbing across Nashville, and lately, we're seeing deals fall out at a much higher rate than usual. At FYKES Realty Group, our fallout rate is just below 10%, and we work hard to keep it there. The difference comes down to preparation.

1. Inspection surprises are the number one reason deals fall apart. We don't always recommend pre-inspections, but we walk through every potential issue ahead of time. What should we repair before listing? What's better left as a negotiation point during the inspection period? When you've already thought through the scenarios, you're not scrambling when that report lands.

2. Financing can fall through at the worst possible moment. You can't control a buyer's financial situation, but you can protect yourself on the front end. We always require a strong pre-approval letter from a reputable lender, and we call that lender directly to confirm they've done their due diligence. Local lenders are almost always stronger than big national companies, where you can't get anyone on the phone. Getting a qualified buyer is good. Getting a verified buyer is even better.

“It's never done until the money hits your account.”

3. A low appraisal can stop a deal in its tracks, and overpricing is usually what causes it. No matter what a buyer agrees to pay, an appraiser has to sign off on that number. We talk about this on the front end with every seller. What is an appraiser going to think your home is worth? When you price with the appraisal in mind from the start, you take one of the biggest risks off the table.

4. Buyer's remorse is real, and it's happening a lot right now. There's so much in the media about economic uncertainty that buyers are second-guessing decisions they were comfortable with a week earlier. Nashville's job growth is strong, and the top industries here are solid. The economy is uncomfortable right now, but it isn't uncertain, and there's an important difference. You can't prevent cold feet entirely, but keeping communication open and setting clear timelines helps move buyers through the process.

5. Too many contingencies give buyers too many exits. When that offer comes in, it's natural to focus on the number. But that number means nothing if the deal is loaded with conditions that make it easy to walk away. We've seen offers contingent on a spouse viewing the property a month later, and we're not waiting a month to find out. We always advise our sellers to look at the entire offer, not just the price, because that's what actually gets you to the closing table.

We do everything we can to stay ahead of the surprises. We always tell our sellers not to really start packing until they're through the inspection, and even then, know where your favorite kitchen appliance is in the boxes, just in case. It's not about being pessimistic. It's about being prepared.

If you're thinking about selling in Nashville or anywhere in Middle Tennessee, we would love to help you put a plan together. Call or text us at (615) 315-9223, email us at homes@fykesgroup.com, or visit fykesrealtygroup.com.