How many deals fall out of escrow?

According to a recent report from Trulia, a significant portion of real estate transactions experience setbacks during the escrow period, with one in four falling through for various reasons. However, top-performing real estate agents assert that they encounter such instances infrequently.

The reasons behind these escrow fallouts can be multifaceted, ranging from unexpected issues with the property's title to financing difficulties. Understanding the primary causes can help agents anticipate and mitigate potential obstacles.

One of the primary reasons for a sale to fall through is related to the buyer's financing. Issues with loan approval, changes in financial circumstances, or insufficient creditworthiness can all lead to the collapse of an escrow.

Another common cause is the discovery of unexpected issues with the property during the inspection process. Major defects, unpermitted modifications, or environmental hazards can all be deal-breakers for buyers.

Additionally, disputes over the terms of the contract can also lead to escrow fallouts. Misunderstandings about the sale price, repairs required, or contingencies can all cause delays or cancellations.