From initial thought to closing, the average amount of time that it takes to sell a home averages out to about 10 months. What happens during that time can vary depending on age, geography, and location, and sellers can encounter pain points at critical times: 41% of sellers experience an offer falling through, and 61% will change the price in order to sell their home.
Surprisingly, urban sellers are more likely than suburban and rural sellers to have an offer fall through, with 58% of urban sellers experiencing the phenomenon, compared to 33% of suburban and 31% of rural sellers. Millennials in particular are more likely to have at least one offer fall through (58%, compared to 30% of boomers).
The high likelihood of offers failing to reach close may explain why millennials are more likely to have multiple inspections conducted by prospective buyers. This extends to urban sellers, perhaps due to a higher level of competition for homes and a higher likelihood of offers failing to close.
According to sellers who experience one or more offer falling through, issues surrounding money and financing are usually the main causes. Buyer financing is cited by 23% of sellers as the cause of an offer not reaching close, while 17% reported that the buyer couldn’t sell their home and that their sale was contingent on the event.
The list of pitfalls that have the ability to squash a sale is long. It includes buyers who change their mind, who were not serious or bailed after the inspection report, those whose offer wasn’t close enough to the list price, and those who found another less expensive home to buy.