09/04/2026
Why Home Sales Fall Through: 10 Common Problems West Michigan Home Buyers Should Know About
Buying a home is exciting, but getting an accepted offer is only the beginning. Between the accepted offer and closing, there are several steps that need to go smoothly before you officially get the keys.
In West Michigan, buyers can run into everything from appraisal issues and inspection concerns to financing problems and last-minute surprises. While some issues are easily resolved, others can cause a buyer to walk away or a transaction to fall apart altogether.
The good news? Understanding the most common problems ahead of time can help you prepare, avoid surprises, and work with your Realtor to keep your transaction moving toward closing.
Here are some of the most common reasons a home sale doesn’t go through.
1. The Home Doesn’t Appraise at the Purchase Price
One of the most common hurdles is an appraisal that comes in below the agreed-upon purchase price.
If you’re obtaining a mortgage, your lender will generally require an appraisal to determine whether the property provides sufficient collateral for the loan. If the appraised value is lower than your purchase price, there is a value gap that needs to be addressed.
For example:
Purchase price: $300,000
Appraised value: $285,000
Difference: $15,000
⏺ Depending on the terms of your purchase agreement and your financing, you may have several options, such as renegotiating the purchase price, bringing additional funds to closing, or challenging the appraisal.
However, if the buyer and seller cannot reach an agreement, the transaction may fall apart.
⏺ What buyers can do:
Before making an offer, talk with your lender and Realtor about how much financial flexibility you have if the property doesn’t appraise at the purchase price. Understanding your options before you write the offer can make a stressful situation much easier to navigate.
2. Appraisal Repairs or Property Conditions Become an Issue
An appraisal isn’t always just about determining value.
Depending on the type of financing you’re using and the condition of the property, the appraiser may identify repairs or property conditions that need to be addressed before the lender will approve the loan.
⏺ Examples can include certain safety or habitability concerns, deteriorated structures, missing or damaged components, or other conditions that may affect the property’s eligibility for the loan.
This can become particularly important with FHA, VA, USDA, and other loan programs that may have specific property requirements.
If repairs are required, the buyer and seller may need to negotiate who will complete them and how they will be handled before closing.
⏺ Why this matters: A home can be perfectly acceptable to a buyer from a personal perspective but still have an issue that creates a problem for the lender.
Your Realtor and lender should work together early in the transaction to identify potential financing-related concerns.
3. The Home Inspection Uncovers Major Problems
An inspection is another major point where a transaction can change direction.
⏺ A home inspection can reveal issues that weren’t obvious during a showing, including:
Roof problems
Foundation or structural concerns
Electrical issues
Plumbing problems
HVAC concerns
Water intrusion
Mold or moisture concerns
Sewer or septic issues
Well problems
Pest or wood-destroying insect concerns
Safety hazards
Deferred maintenance
⏺ Not every inspection issue is a reason to walk away.
The important question is often: Which issues are significant enough to address, and what does the purchase agreement allow the buyer and seller to do?
Depending on the terms of the offer and inspection contingency, buyers may negotiate repairs, credits, price adjustments, or other solutions.
But if the parties cannot agree on how to handle significant inspection findings, the buyer may decide not to proceed.
4. The Seller Doesn’t Agree to the Requested Repairs
Finding problems during an inspection doesn’t automatically mean the seller has to fix them.
This is an important distinction for buyers to understand.
⏺ A buyer may request that a seller make certain repairs, but whether the seller is obligated to make those repairs depends on the purchase agreement and applicable circumstances.
Sometimes the seller agrees to everything. Sometimes they agree to only the most important items. Sometimes they offer a credit instead of completing the repairs themselves.
And sometimes… they say no.
If the buyer and seller cannot reach an agreement that works for both sides, the transaction may terminate depending on the applicable terms and contingencies.
5. Financing Falls Apart
Even after a buyer receives a preapproval, financing isn’t necessarily guaranteed until the lender completes the underwriting process.
A buyer’s financial situation can change during the transaction.
For example:
New debt is taken on
Credit scores change
Employment or income changes
Large purchases are made
Required documentation cannot be provided
The buyer’s financial circumstances change
The loan program requirements aren’t ultimately satisfied
This is why buyers should be extremely careful about making major financial changes after submitting an offer.
⏺ A good rule of thumb:
Don’t finance a new vehicle, open new credit cards, make large unexplained deposits, or make major purchases without talking to your lender first.
Your lender should be your go-to resource for questions about your mortgage.
6. The Buyer Can’t Secure Homeowners Insurance
Insurance is another potential roadblock that buyers don’t always think about early enough.
Certain property characteristics can make a home more difficult or expensive to insure.
Examples may include:
Older roofs
Outdated electrical systems
Certain types of heating systems
Prior insurance claims
Vacant or distressed properties
Certain outbuildings
Swimming pools
Property location or environmental risks
⏺ If a buyer cannot obtain acceptable homeowners insurance within the required timeframe, it can create a significant problem for the mortgage and ultimately the closing.
Tip: Consider contacting an insurance agent early in the transaction rather than waiting until the last minute.
7. Title Problems Are Discovered
Before closing, the title company conducts a title search to determine whether there are issues affecting ownership of the property.
Occasionally, problems are discovered that need to be resolved before the buyer can receive clear title.
Examples can include:
Unreleased liens
Outstanding mortgages
Judgment liens
Ownership disputes
Recording errors
Boundary or easement concerns
Probate or estate issues
Incorrect names or legal descriptions
⏺ Some title problems can be resolved relatively quickly. Others can take considerably longer.
If a title issue cannot be resolved within the required timeframe, it can delay—or potentially prevent—the closing.
8. The Buyer or Seller Gets Cold Feet
Sometimes the problem isn’t the house at all.
Buying or selling a home is a major financial and emotional decision. Occasionally, one party simply changes their mind.
A buyer may become nervous after an inspection, experience a change in circumstances, or decide they aren’t comfortable with the purchase.
Likewise, a seller may have difficulty finding their next home, experience a personal situation, or simply reconsider their decision to sell.
⏺ However, once an offer is accepted, the parties are generally subject to the terms of their purchase agreement. Walking away isn’t always as simple as saying, “I’ve changed my mind.”
That’s one reason it’s so important to understand the terms of your offer before signing it.
9. The Buyer Can’t Sell Their Current Home
Some buyers need to sell their existing property before purchasing another home.
⏺ This can create a chain of transactions.
If the buyer’s home doesn’t sell within the expected timeframe, they may not have the funds needed to complete their purchase.
This can be especially challenging when multiple transactions are dependent on one another.
⏺ For buyers who need to sell before purchasing, it’s important to discuss your timeline and financial situation with your Realtor and lender before making an offer.
10. Last-Minute Issues Appear Before Closing
Even after inspections, appraisals, financing, and title work are completed, issues can still arise before closing.
For example:
Damage occurs to the property
A repair wasn’t completed as agreed
The property isn’t in the expected condition
Required documents aren’t completed
Financing experiences an unexpected delay
The buyer’s funds aren’t available
A title issue resurfaces
The final walkthrough reveals a problem
This is why the final walkthrough is an important part of the buying process.
⏺ The goal isn’t to conduct another full home inspection. Instead, buyers generally want to confirm that the property’s condition is consistent with what was agreed upon and that negotiated repairs or other agreed-upon items have been addressed.
✨ So, How Can West Michigan Buyers Reduce the Risk?
You can’t eliminate every potential problem, but you can prepare for the most common ones.
Work with a knowledgeable Realtor
A good Realtor can help you understand the process, identify potential concerns, structure an offer appropriately, and communicate with the other parties throughout the transaction.
Get preapproved before you shop
⭐️ A strong preapproval can help you understand your actual purchasing power and identify potential financing issues early.
Don’t skip your due diligence
Inspections, title work, insurance, and other parts of the transaction exist for a reason. Take them seriously and understand your contractual rights and deadlines.
Understand your appraisal strategy
⭐️Talk with your Realtor and lender about what happens if the appraisal comes in below your offer price. Knowing your options ahead of time can prevent a stressful surprise.
Don’t make major financial changes
Once you’re under contract, talk to your lender before making significant purchases, opening credit accounts, changing jobs, or making other financial moves that could affect your mortgage.
⭐️ Keep communication open
Real estate transactions involve a lot of moving pieces. Your Realtor, lender, title company, inspectors, insurance agent, and other professionals all play different roles.
When everyone communicates effectively, problems can often be identified and addressed before they become deal-breakers.
✨ A Deal Falling Apart Doesn’t Always Mean You Did Something Wrong
It’s easy for buyers to feel disappointed when a transaction doesn’t make it to closing.
But sometimes walking away from a purchase is actually the right decision.
Discovering a serious foundation problem during an inspection, learning that the property won’t qualify for your financing, or discovering that the appraisal doesn’t support the agreed-upon price can be frustrating—but it’s much better to identify a major problem before you own the property.
The goal isn’t simply to get an offer accepted.
The goal is to get you into the right home, at a price and under terms that make sense for you.
🏠 Buying a Home in West Michigan?
Whether you’re searching in Muskegon, Oceana, Ottawa, Newaygo, or surrounding West Michigan communities, having the right guidance throughout the transaction can make a major difference.
⏺ From writing the offer to navigating inspections, appraisals, negotiations, financing, and closing, having a Realtor in your corner can help you understand what is happening at each step of the process.
⏺ Thinking about buying a home in West Michigan? Let’s talk about your goals, your budget, and what you should be prepared for before you start your search.
This article is for general informational purposes only and is not intended to provide legal, financial, tax, lending, inspection, or appraisal advice. Specific rights and obligations depend on the terms of the purchase agreement, financing program, and circumstances of the transaction. Buyers should consult the appropriate licensed professionals regarding their individual situation.
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