If you’ve been watching the headlines lately, you’d think home buyers are canceling contracts because the housing market is about to implode.

That’s not what’s actually happening.

I saw one of those headlines recently and immediately thought, okay, we need to talk about this. Because of the way the news is framing it makes it sound dramatic, like buyers are backing out because something catastrophic is coming.

Nope.

In reality, buyers are being more educated, more cautious, and more selective, and honestly, that’s a healthy shift for the market.

👉 If you’d rather watch than read, you can watch the full video here.

What I’m Seeing on the Front Lines

I’ve been a mortgage lender for 19 years, and my team is one of the top purchase teams in the country. Every single month, we’re closing between 50 and 70 home purchases nationwide.

So, when I talk about why buyers are canceling contracts, this isn’t speculation; it’s what I see every day and what I actively advise my clients on.

There are three main reasons buyers walk away from a deal right now.

1. Property Condition Issues

This is the number one reason buyers are canceling contracts today.

From 2020 through 2022, buyers were skipping inspections just to win homes. That era is over — thank goodness.

Buyers today are:

• Getting full home inspections

• Ordering mold and pest reports

• Inspecting new construction (as they should)

And sometimes what they find is a hard no.

I’ve seen contracts canceled over:

• Mold (especially black mold)

• Foundation problems

• Roof issues

• Major leaks

Here’s the reality: if you’re a first-time buyer putting 3% down or using a VA loan with zero down, and the home needs a new roof or serious repairs, that’s not the right house for you.

As a lender, if you call me and tell me there’s mold in the attic, I’m not going to push you through anyway. Not because I’m difficult, but because it’s a bad investment for you and the bank.

Yes, small issues can often be negotiated. Sellers may offer repairs or credits. But if the problems are big and the seller won’t work with you, walking away is the smart move.

2. Low Appraisals

Low appraisals were a huge issue in 2021 and 2022 when prices were skyrocketing, and comparable sales couldn’t keep up.

Today, they’re much less common, but they still happen.

When I see low appraisals now, it’s usually because the seller is overpriced and unwilling to adjust.

Here’s how this plays out:

• You’re under contract at $500,000

• The appraisal comes in at $480,000

As a lender, I must use the lower value.

That $20,000 gap has to be covered by the buyer if the seller won’t reduce the price.

Some buyers can do that. Some won’t out of principle. Others simply don’t have the cash.

When there’s no path forward, the contract gets canceled — and that’s okay.

This is why I always encourage buyers to review comparable sales before making an offer. If a seller is unrealistic, you want to know that going in, so there are no surprises later.

3. Buyers Were Never Truly Qualified

This one is frustrating — and avoidable.

We live in a click-click-done world:
Fill out an online form.
Instant “pre-approval.”
No verification.

No one reviewed:

• The actual payment

• Property taxes

• Insurance

• HOA dues

• Closing costs

That’s how buyers end up under contract on homes they can’t actually afford.

When the real numbers come out, the deal falls apart.

This is exactly why my team does fully underwritten pre-approvals.

We verify documents, run a full credit check, review everything with a real underwriter, and walk through the full payment upfront. When our buyers go shopping, their pre-approval is solid.

That’s why cancellations due to qualification issues are incredibly rare for us.

The Bottom Line

Buyers aren’t panicking.

They’re:

• Getting inspections

• Saying no to bad investments

• Refusing to overpay

• Making informed decisions

We also have more inventory in many markets, which means buyers can be choosier, and that’s healthy for housing.

If you’re thinking about buying, the best way to protect yourself is simple:

• Get properly qualified

• Understand the full payment

• Work with a lender who actually explains things

Have questions? We are here for you!

📞 Call or Text Me: (786) 933-2077
🏡 Get Pre-Approved: https://www.zerostressmortgage.com 
📅 Set Up a Time to Chat: https://calendly.com/jennifer-beeston