How to Avoid Deal Killers in Real Estate Contracts | The Espinosa Group

by Sheri Espinosa

How to Avoid Deal Killers in Real Estate Contracts

A dream home or the perfect buyer can slip away if a deal falls apart in the contract stage. In real estate, we call these stumbling blocks “deal killers”—the mistakes, oversights, or disagreements that can derail a transaction.

But here’s the good news: with preparation, strategy, and the right guidance, you can avoid most of them.

Let’s break down the biggest deal killers—and how to keep your transaction moving smoothly from offer to closing.

🚫 Common Real Estate Deal Killers

1. Unrealistic Contingencies

Buyers sometimes load contracts with multiple contingencies—selling their current home first, requesting too many repairs, or insisting on extended timelines. While contingencies protect buyers, too many can overwhelm sellers.

👉 Prevention Tip: Keep contingencies reasonable. Buyers should prioritize what truly matters (financing and inspection), and sellers should be open to negotiation without feeling burdened.

2. Financing Failures

The deal can collapse if buyers aren’t fully pre-approved, or if last-minute financial issues arise. Sellers may waste valuable time if a buyer’s loan falls through.

👉 Prevention Tip: Buyers should secure pre-approval before house hunting and avoid major financial changes (like buying a car) during escrow. Sellers should favor offers backed by strong pre-approvals or cash.

3. Inspection Surprises

A home inspection can uncover issues—roof leaks, foundation cracks, or outdated wiring—that scare buyers away or lead to contentious negotiations.

👉 Prevention Tip: Sellers can consider a pre-listing inspection to address big-ticket issues before listing. Buyers should focus on major concerns, not cosmetic fixes, when reviewing the report.

4. Appraisal Gaps

If the appraisal comes in lower than the agreed price, lenders won’t approve the full loan. This often leads to renegotiations or canceled contracts.

👉 Prevention Tip: Sellers should price strategically to avoid appraisal issues. Buyers can bridge the gap with additional cash or appraisal gap clauses if they’re truly committed.

5. Poor Communication

Delayed responses, unclear terms, or too much back-and-forth can breed frustration and mistrust. Deals die when one side feels ignored or misled.

👉 Prevention Tip: Work with an experienced real estate professional who keeps all parties updated, clear, and calm.

💡 The Key: Balance and Flexibility

Contracts protect both buyers and sellers—but rigidity can kill a deal. The most successful closings happen when both sides enter with realistic expectations, open communication, and a willingness to compromise.

A skilled agent doesn’t just fill in paperwork—they anticipate pitfalls, smooth out negotiations, and keep the transaction moving forward.