Real estate canceled contracts on the rise

Canceled real estate contracts have been increasing, according to data from Redfin and Cotality. While headlines may suggest widespread failure, only 10% to 15% of sales encounter these issues.

Increased mortgage rates and a higher volume of available homes have made buyers more cautious. This environment provides house hunters with more options, making them more likely to walk away if inspections reveal problems, appraisals come in low, or sellers refuse to agree to concessions.

A Redfin survey of real estate agents identified inspection or repair issues as the primary reason for buyers backing out, cited by 70.4% of respondents. Experts suggest that sellers can mitigate this risk by conducting pre-listing inspections to address potential problems before the home reaches the market.