In a perfect world, going under contract would mean smooth sailing to closing day. The hard part—prepping your home, attracting buyers, fielding offers—would be over, and you’d just sit back and wait for the transaction to close. But in real estate, the finish line isn’t the contract—it’s the closing table. And between those two milestones, a lot can happen.
For sellers in Southeastern North Carolina or anywhere in the country, understanding what might derail a pending sale is crucial. Whether you're listing a beach cottage in Wrightsville Beach or a family home in Brunswick Forest, being aware of potential pitfalls can save you time, money, and stress. Below are five common deal-breakers that can tank your home sale after you’re under contract—and what you can do to prevent them.
1. A Problematic Home Inspection
Why it matters:
The home inspection is one of the most nerve-wracking phases of a real estate transaction. For buyers, it’s their chance to understand exactly what they’re getting into. For sellers, it’s a moment of truth—will your home hold up under scrutiny?
Common inspection deal-breakers include:
Foundation cracks or settlement issues
Roof damage or leakage
Electrical system flaws or outdated wiring
HVAC systems on their last legs
Plumbing leaks or mold presence
Termite or pest damage
Buyers often have an inspection contingency, which means they can walk away from the deal (with their earnest money intact) if major issues are discovered.
Molding Termite Damage
What you can do:
Consider a pre-listing inspection before putting your home on the market. This allows you to proactively address issues and price the home appropriately. If you skip this step, at least make sure basic systems are serviced and functioning. Respond to repair requests reasonably and be willing to negotiate. Being inflexible on repairs can send a buyer running.
2. The Appraisal Comes in Low
Why it matters:
Even if you and the buyer agree on a price, the lender wants reassurance that the home is worth what they’re lending. That’s where the appraisal comes in.
If the appraised value is lower than the agreed-upon purchase price, the lender may refuse to fund the full amount. The buyer then has to either:
Pay the difference in cash,
Negotiate a lower price with you,
Or walk away from the deal.
This can be particularly challenging in a fast-moving or appreciating market where homes are selling above asking price due to bidding wars.
House Appraiser
What you can do:
Price your home realistically from the start. Your real estate agent should run a comparative market analysis (CMA) to help guide your pricing. If you receive multiple offers above asking, choose one with a strong down payment or appraisal gap coverage written into the contract. If a low appraisal does occur, you may be able to challenge it by providing comps or asking the buyer to order a second appraisal.
3. Financing Falls Apart
Why it matters:
Most buyers need a mortgage to purchase a home, and pre-approval doesn’t guarantee final loan approval. Financing can unravel for many reasons:
The buyer changes jobs or takes on new debt before closing
Credit scores dip unexpectedly
The lender discovers inconsistent documentation
The buyer loses a source of income
Appraisal issues reduce the loan amount (see above)
If financing fails and the buyer can’t secure the mortgage, the deal may fall through unless you’re willing to extend the contract while they get back on track.
Mortgage Lender Delivering Bad News
What you can do:
Work with your agent to vet buyers with solid financing. Ideally, they’ll have a pre-approval letter (not just pre-qualification) and a reputable lender. Ask your agent to touch base with the buyer’s lender to confirm things are on track. Also, be wary of buyers with contingencies that may delay the process, like needing to sell another home to fund this one.
4. Title Problems Surface
Why it matters:
Before a home can officially change hands, the title must be "clear"—free from legal questions about ownership or outstanding claims. During the due diligence period, the buyer’s attorney or title company will conduct a title search.
Common title problems that can derail a closing:
Unknown liens (such as unpaid property taxes or contractor bills)
Errors in public records or legal descriptions
Heirs or co-owners who haven’t signed off on the sale
Boundary disputes or encroachments
Issues with prior deeds or conveyances
If a problem arises, the buyer may back out, or the closing could be delayed significantly while it’s resolved.
What you can do:
Before listing your home, check for any lingering liens or legal disputes. If the property was inherited or you co-own it, make sure all parties are on board and the legal paperwork is in order. Sellers in North Carolina often work with closing attorneys who can pre-check title issues—this can give you a head start on clearing up any surprises before they become deal-breakers.
5. Cold Feet or Life Changes
Why it matters:
Sometimes, deals fall through for reasons beyond inspections and appraisals. Buyers can get cold feet. Life circumstances can shift unexpectedly—a job transfer falls through, a family emergency arises, or another home steals their heart.
Even if there’s no "legal" reason to exit, buyers might be willing to forfeit their earnest money deposit if it means walking away from what they feel is a bad decision. In other cases, contingencies like the home sale contingency (where the buyer must sell their current home first) can fall through, dragging your contract down with it.
What you can do:
You can’t control a buyer’s life, but you can protect your interests. Choose buyers who are committed, pre-approved, and serious—not just window shopping. Pay attention to contract contingencies and make sure deadlines are tight enough to keep momentum but reasonable enough for both sides. Your agent should maintain good communication with the buyer’s side to detect red flags early.
Bonus: Not Being Prepared for Closing Delays
Closing delays can be frustrating and costly, especially if you're juggling a move, temporary housing, or a purchase of your next home. These delays often stem from:
Incomplete paperwork
Last-minute loan conditions
Scheduling conflicts with attorneys, notaries, or inspectors
HOA documents or repairs not being finalized
While not always deal-breakers, delays can cause stress, extend your carrying costs, and even derail domino-effect transactions involving multiple parties.
What you can do:
Stay organized, respond quickly to requests from your agent, attorney, or closing company, and keep your home in good condition through the closing day. If repairs were agreed upon, complete them promptly and provide documentation. Don’t turn off utilities until after closing—even if the house is vacant. Small missteps can cause big headaches.
The Bottom Line
Going under contract is an exciting milestone, but it’s not the end of the journey. In today’s complex real estate environment, even small missteps can lead to a deal falling apart—especially when emotions, inspections, lenders, and legal documents are all involved.
Fortunately, you don’t have to navigate this alone. A knowledgeable, experienced real estate agent will help you stay proactive, communicate with all parties, and anticipate potential issues before they escalate. From choosing a strong offer to monitoring the buyer’s financing and shepherding the deal through closing, your agent is your greatest asset.
If you're preparing to sell in Wilmington, Leland, Hampstead, or anywhere in the greater Cape Fear area, our team at The Cameron Team is here to help make your sale as smooth—and successful—as possible.
