You may have noticed recent headlines on social media discussing the increase in buyers backing out of contracts, with numbers rising to levels not seen since 2017. While this may sound alarming, the situation can vary significantly depending on the market.
Here’s the important thing to understand if you’re trying to sell: in many cases, there’s one primary cause behind this trend. Fortunately, it’s something you can actually control.
Let’s dive into what you can do to prevent the biggest dealbreaker from becoming a problem for you.
The Leading Dealbreaker: Issues Found During the Inspection
A survey by Redfin reveals that over 70% of canceled contracts were due to issues that arose during the home inspection (see the graph below):
This makes sense because today’s buyers have something they didn’t have just a few years ago: more options.
Why Repairing Issues Before Listing is More Important Than Ever
A few years ago, when there were fewer homes available, buyers often overlooked problems because they felt rushed or limited by the lack of choice.
However, in today’s market, skipping necessary repairs is one of the quickest ways to lose a deal.
With more properties to choose from, buyers are now more discerning. If a house feels risky, outdated, or has hidden potential problems, they are much more likely to walk away. So, what should you fix? Your agent can help guide you.
How Your Agent Can Help You Get Ahead
A local agent can walk through your property and provide personalized advice based on the specifics of your home, the current market, and what buyers in your area prioritize. They will also know the key turnoffs for buyers right now, which can help you prevent future issues.
For instance, according to Zillow, buyers are especially concerned about the following issues:
- Roof problems: leaks, sagging, etc.
- Plumbing issues: standing water, leaks, water damage, etc.
- Electrical concerns: outdated wiring, missing GFCI outlets, etc.
- HVAC problems: non-functioning units
- Pest or insect damage: termite colonies, etc.
- Hazardous materials: mold, asbestos, lead, etc.
- Safety/code violations: missing smoke detectors, stuck windows, etc.
- Structural issues: foundation cracks, sagging floors, etc.
Not all of these may apply to your home—maybe only one or two, or none at all. It all depends on the condition of your property. However, an agent has the resources to help assess and address potential issues, keeping you ahead of the game.
The Value of a Pre-Listing Inspection
For buyers, these issues are more than cosmetic—they’re trust issues. Once buyers start wondering, “What else might be wrong?” it can be difficult to recover momentum.
That’s why some agents recommend a pre-listing inspection, giving you a preview of what buyers will find in their own inspections. With this insight, you can:
- Address concerns before listing or disclose them upfront
- Avoid negotiating under pressure
- Avoid scrambling for contractors before your closing date
However, keep in mind, you don’t have to fix everything. You just need to be strategic about which repairs you address to ensure you and your buyer aren’t caught off guard.
This is where your agent can help:
- Advise if a pre-listing inspection is beneficial for your area
- Recommend a trusted inspector (if you choose to do one)
- Help you analyze the results and identify critical dealbreakers in your market
- Guide you in deciding what to fix or offer credits for
- Ensure you avoid over-spending or under-preparing
Final Thoughts
Inspection issues are one of the top dealbreakers for buyers today—and this is something you can control. By being proactive about addressing key repairs before listing your home, you can set yourself up for success.
If you need assistance identifying where to focus your efforts, let’s connect to ensure your sale stays on track from day one.