If you're a realtor, you've probably felt it. That sinking feeling when a deal you worked hard on suddenly falls apart. The buyer gets cold feet. The inspection comes back with "concerns." Or maybe they just… disappear.
You're not imagining things. Homebuyers are backing out of deals at the fastest pace since 2017. And if you want to keep your closings on track, you need to understand what's happening and how to get ahead of it.
Let's break it down.
The Numbers Don't Lie
According to recent data, roughly 40,000 home-purchase agreements were canceled in December 2025. That's 16.3% of homes that went under contract, the highest December rate on record.
To put that in perspective: about 1 in 6 deals are falling through right now.
That's a lot of wasted time. A lot of frustrated sellers. And a lot of commission checks that never happen.
So what's going on?
Why Buyers Are Walking Away
There's no single reason deals are falling apart. But a few themes keep popping up:
1. Affordability Is Still a Major Hurdle
Let's be real. Homes are expensive. And even though inventory is up, mortgage payments are still stretching budgets thin.
Many buyers are using inspection contingencies as their "exit ramp." They'll cite structural issues or needed repairs as the official reason for backing out. But the real reason? The monthly payment just doesn't feel sustainable.
When buyers sit down and see what their actual mortgage payment will be, principal, interest, taxes, insurance, some get sticker shock. And that shock turns into cold feet.
2. More Inventory Means More Options
For the first time in years, buyers have choices. Home sellers now outnumber buyers by a record margin. That shift in leverage changes everything.
When buyers know there's another house down the street (maybe in better condition or at a lower price), they're more willing to walk. Why settle when you can shop around?
This is good news for buyers. But it means sellers and their agents need to work harder to keep deals together.
3. Overpriced Listings
In a market with more inventory, pricing matters more than ever. Homes priced too high relative to their condition or location are getting passed over, or worse, they're going under contract and then falling out when buyers realize they can do better.
4. Deferred Maintenance
Buyers today are savvy. They're watching YouTube videos about foundation cracks and reading forums about roof lifespans. When they see deferred maintenance, they worry about hidden costs.
If a seller hasn't kept up with basic repairs, buyers see it as a red flag. And in a market where they have options, that red flag becomes a reason to walk.
Where It's Happening Most
Not all markets are feeling this equally. Some cities are seeing cancellation rates above 20%, while others are holding steady.
Highest cancellation rates:
- Atlanta: 22.5%
- Jacksonville: 20.6%
- San Antonio: 20.6%
Lowest cancellation rates:
- Nassau County: 3.8%
- San Francisco: 4.2%
- San Jose: 8.9%
What's the difference? In markets where inventory has surged, buyers have more leverage. In tighter markets (like parts of California), buyers are still competing, and they're less likely to walk away from a win.
Know your local market. If you're in a high-cancellation area, you need to be extra proactive.
How to Keep Your Deals Together
Alright, here's the part you came for. If cancellations are up, how do you make sure YOUR deals actually close?
1. Pre-Qualify Buyers Properly
This is huge. A pre-approval letter is not the same as a fully underwritten approval. Too many deals fall apart because the buyer's financing wasn't as solid as everyone thought.
Work with a lender who does thorough pre-qualifications upfront. At Affluent Mortgage, we dig into the numbers early so there are no surprises later. That means looking at income, assets, debt, and credit, not just running a quick check and handing over a letter.
When buyers know exactly what they can afford before they start shopping, they're less likely to back out due to payment shock.
2. Set Realistic Expectations Early
Have honest conversations with your buyers about total housing costs. Don't just talk about the purchase price. Talk about:
- Monthly mortgage payments (including taxes and insurance)
- HOA fees
- Maintenance costs
- Potential repairs
When buyers go in with eyes wide open, they're less likely to panic later.
3. Price Listings Right the First Time
If you're working with sellers, help them understand the market. An overpriced listing in today's environment is a recipe for failed deals.
Better to price competitively, generate strong interest, and close quickly than to overshoot and watch buyers walk after inspections.
4. Address Maintenance Issues Before Listing
Encourage your sellers to handle obvious repairs before the home hits the market. A pre-listing inspection can identify issues that might spook buyers later.
Yes, it costs money upfront. But it's a lot cheaper than losing a deal (and starting over) because of a cracked foundation or an aging HVAC system.
5. Choose the Right Financing Partner
Not all lenders are created equal. Some are slow. Some don't communicate. Some let deals fall apart because they didn't catch an issue early.
You want a lender who:
- Responds quickly
- Communicates clearly with all parties
- Solves problems instead of creating them
- Offers flexible loan options for different buyer situations
At Affluent Mortgage, we work closely with realtors to keep deals on track. Whether your buyer is a W-2 employee, self-employed, or an investor, we have loan options that fit their situation. And we stay in constant communication so nothing falls through the cracks.
6. Stay in Touch Throughout the Process
Don't go radio silent after the contract is signed. Check in with your buyers regularly. Ask how they're feeling. Address concerns before they become deal-breakers.
Sometimes buyers just need reassurance. A quick call or text can be the difference between a closing and a cancellation.
The Silver Lining
Here's some good news: affordability is expected to improve in 2026. Mortgage rates are projected to decline, and wage growth is outpacing housing cost increases.
That means some of the pressure driving cancellations should ease up. But that doesn't mean you can relax. Markets shift, and the agents who adapt fastest are the ones who thrive.
Let's Keep Your Deals Closing
Look, nobody wants to see a deal fall apart. Not you. Not your client. And definitely not us.
At Affluent Mortgage, we're in the business of getting loans closed: not just approved. We work with realtors every day to make sure financing is solid from the start and stays that way through closing.
If you're tired of deals falling through because of financing hiccups, let's talk. We'll help you pre-qualify buyers properly, set realistic expectations, and navigate tricky situations when they come up.
Ready to partner up? Reach out to us and let's make sure your next deal actually sticks.