How often do contingent offers fall through? What you should know

Contributed by Sarah Henseler

Jul 18, 2025

7-minute read

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There’s a lot to look forward to when buying or selling a home, but there’s also a lot to figure out. And contingent offers are sometimes one of the more confusing parts of the home buying process.

If things don’t go as planned and the conditions of the buyer’s offer aren’t met, the buyer has the right to cancel the deal. Adding a contingency can help the buyer feel more comfortable, but it also adds some risk and stress for both the buyer and the seller.

For example, in a seller’s market when homes sell quickly, sellers might not like contingent offers. They may worry about wasting time on a deal that might fall through, especially if other buyers are ready to purchase with no strings attached. Conversely, buyers may worry about missing out on their dream home if something doesn't work out.

While only a small percentage of home sales fall through due to contingencies, it's important to understand how adding them can impact the buying process, whether you're a buyer or a seller.

How many contingent offers fall through?

There’s a small percentage of home sales that don’t reach the finish line. In fact, according to a 2024 survey from the National Association of REALTORS®, only 5% of home sale contracts were canceled, and just 13% were delayed before closing.

So, while deals can fall through, it’s not a very common occurrence. Whether you’re buying or selling, these stats may offer some peace of mind, since most contracts close — even if there are a few bumps along the way.

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Common types of contingent offers

Contingent offers are common in real estate. When a house is listed as contingent, it means a buyer has made an offer and the seller has accepted it, but certain conditions still need to be met before the sale is final. Here’s a closer look at some of the most common types of contingencies buyers can include in their offers.

Home inspection contingency

Poor home inspections are one of the more common reasons a home sale might fall apart. A home inspection contingency lets the buyer hire a professional to check the house before closing. If the inspector finds some concerns like a damaged roof or bad plumbing, the buyer can back out of the deal and keep their deposit. This gives buyers some protection in case the home needs expensive repairs they didn’t know about.

While most homes turn up minor issues during an inspection, like a loose railing or aging appliances, some problems may be serious enough to cancel the sale. Structural issues like foundation cracks, outdated or unsafe electrical systems, roof or basement leaks, and significant water damage can all raise red flags. HVAC or plumbing problems can also impact a buyer’s decision to move forward.

For this reason, it’s a good idea for both buyers and sellers to know what an inspection could find and how it can impact the sale of the home.

So, if you’re planning to sell your home, getting a preinspection can help you catch any major issues early. That way, you’re less likely to face big surprises right before closing.

Home sale contingency

Buying and selling a home at the same time is not only stressful for a buyer, but it’s often extremely financially taxing, especially if the buyer may end up paying two mortgages. This is where a home sale contingency can be helpful for the buyer, since they can add a contingency into their offer allowing them a certain amount of time to sell their current home before closing on the new one.

If the home doesn’t sell within that window, the buyer and seller can either choose to extend the timeline or walk away from the deal. The buyer may also choose to move forward and carry both mortgages regardless of the home sale.

From a seller’s perspective, this type of contingency can feel risky. It adds extra uncertainty to the deal, particularly in a seller’s market when other buyers might be ready to close with fewer conditions.

A home sale contingency can give the buyer peace of mind and make for a smoother transition between homes. On the other hand, sellers are taking on more risk and often hesitate to accept this condition unless the market is slower or the buyer’s home is already under contract.

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Appraisal contingency

After the buyer and seller negotiate and agree on a price for the home, the buyer’s lender will usually order an appraisal to confirm the home is worth the agreed-upon amount. If the appraisal comes in below the sale price, it can disrupt the deal. This is usually because most lenders won’t approve a home loan for more than the home’s appraised value.

To add some extra protection, buyers can include an appraisal contingency in their offer. Including this clause allows them to walk away from the contract without forfeiting their earnest money if the appraisal comes in lower than expected.

If the seller won’t lower the price, the buyer can choose to pay the difference out of pocket to cover the financing gap. However, some buyers may not want to pay more than what the home is truly worth.

Low appraisals are typically more common in competitive markets with bidding wars, fast-rising prices, or limited comparable sales. According to a 2024 National Association of REALTORS® survey, appraisal issues caused delays in 6% of recent home sales, and in some cases, they derailed the deal entirely.

Title contingency

You can think of a title search like a background check or sorts for the home you're buying. It's when a title company looks through public records to make sure the seller actually owns the property outright and there aren’t any hidden issues — like unpaid debts or disputes over who owns it.

Let's say the seller owes property taxes or has an unpaid bill from a contractor. If that happens, the county or contractor could have what’s called a lien on the property, which gives them a legal claim to it.

If a title contingency is added to the buyer's offer and something like this pops up, the seller must either resolve the issue before closing or the buyer has the option to cancel the deal without repercussions. While title problems aren’t very common, they can happen. That's why having this clause included in the contract can help minimize the risk of title issues down the road.

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What if the buyer doesn’t get approved for a mortgage?

Contingencies aren't the only thing that can cause a home sale to go sideways — financing issues are another common culprit. Even if a buyer is preapproved, final mortgage approval can still fall through at the last minute.

Once a seller accepts the offer, the buyer's lender begins the final underwriting process. At this point in the process the lender will take a deep dive into the buyer's financial situation, and review things like:

  • Credit score
  • Credit report
  • Proof of income
  • Debt-to-income ratio (DTI)

Because buying a home can take time, these financial details can change quickly. If a buyer starts purchasing furniture on credit, for example, their debt-to-income ratio could increase, since the buyer is taking on more debt.

Or let's say the buyer loses their job or misses a payment, both of which could raise alarms for the lender and harm their chances of final mortgage approval.

If your offer doesn’t include a financing contingency and something goes wrong with your loan, the seller could back out of the deal. That’s why it’s so important for buyers to be extra careful with their finances during the home buying process. It might be tempting to start shopping for furniture, but big purchases or new debt can hurt your loan approval. Therefore, it's best to play it safe and wait until after closing to make those splurges.

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What happens if a contingent offer falls through?

If you make an offer and the contingencies aren’t met, the sale won’t close. In rare cases, a buyer might choose to waive a contingency at the last minute, but that’s not typical.

Contingent offers are commonly used in real estate to protect buyers from risks like losing their earnest money or ending up with a home they can’t afford.

As for sellers, it’s important to be aware that contingency offers do carry a level of uncertainty and risk. Because of this, sellers can choose to add a little extra protection for their best interests as well — such as asking for additional earnest money or accepting backup offers in case the deal falls through.

FAQ

Since there are a lot of moving parts involved in the homebuying process, it’s important to understand how contingencies can cause a deal to completely fall apart. Here are a few things to keep in mind.

Can a seller back out of a contingent offer? 

Yes, but it depends on the details of the real estate purchase agreement. If a buyer can’t follow through on a contingency like lining up financing or closing on their other home, the seller can opt to cancel the deal and move to the backup offer. In some cases, the buyer might include a kick-out clause in the contract if they’re trying to sell their home at the same time. This clause allows the seller to continue showing the property. If another offer comes in, the buyer must either remove their contingency or allow the sale to be canceled.

Can a seller accept another offer while their property is contingent? 

Yes, sellers can accept a backup offer. However, they can’t act on it unless the first offer falls through or the buyer misses a key deadline.

How long are most contingent offers? 

Generally speaking, contingencies give buyers 30 – 60 days to meet their conditions. In some cases, though, the buyer might be given a little more time if, for example, they need to sell their current home before closing on the new one.

At what point do most house sales fall through?

Most home sales that fall through do so because of financing issues or problems uncovered during the inspection. That’s usually when unexpected issues pop up, like costly repairs or problems with the buyer's home loan approval. If those issue can’t be sorted out, either the buyer or seller may decide to not move forward with the contract.

The bottom line: Contingent but confident

At first, contingencies may sound a little intimidating. But they’re actually there to protect your best interests whether you’re buying or selling a home. For buyers, they offer peace of mind, giving you a way out if something important doesn’t go as planned – like if the home inspection uncovers major structural issues. For sellers, contingencies may come with a level of risk and uncertainty. However, there are a few ways to protect your best interests too, like accepting backup offers in case the deal is canceled.

By familiarizing yourself with how contingencies work and working with a real estate agent, you can approach a home sale prepared and confident.

Thinking about making an offer? Start strong with a Verified Approval Letter. Apply online with Rocket Mortgage® or talk to us at (833) 326-6018.

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Ashley Kilroy

Ashley Kilroy is an experienced financial writer. In addition to being a contributing writer at Rocket Homes, she writes for solo entrepreneurs as well as for Fortune 500 companies. Ashley is a finance graduate of the University of Cincinnati. When she isn’t helping people understand their finances, you may find Ashley cage diving with great whites or on safari in South Africa.