How often home sales fall through
An accepted offer isn’t a finished sale. Inspections, appraisals, financing problems and buyers changing their minds all cause pending sales to be canceled. This tool shows how often that happens in your metro area, which tells you how often a backup offer might turn into a purchase.
Where the data comes from
Redfin tracks home purchase agreements that are canceled before closing, as a share of homes that went under contract each month. We show the latest month for your metro area, with the year-earlier figure for comparison, plus the share of listings pulled without selling and the share with price cuts.
An example
If 12% of pending sales are canceled, about 1 in 8 accepted offers doesn’t close. If you’ve lost out on a home you love, a backup offer gives you a real, if modest, chance of getting it.
How a backup offer works
- You submit an offer that the seller accepts in second position, usually on an addendum.
- If the first deal falls through, your offer moves into first position, often with new deadlines.
- In many contracts you can withdraw a backup offer before it becomes primary; check how your earnest money deposit is handled.
When it’s most worth it
Backup offers make the most sense when the first buyer has contingencies that often fail, like a home-sale contingency or an appraisal likely to come in low, and when you’d still pay a similar price. Keep touring in the meantime.
Other signs of a shifting market
Alongside cancellations, the tool shows the share of listings pulled without selling and the share with price cuts. Rising cancellations and delistings together often point to a market where buyers are becoming more cautious and sellers are adjusting, which can also mean more room to negotiate on your next offer.
Questions buyers ask
How often do home sales fall through?
It varies by area, season and the state of the market. The tool shows the latest rate for your metro area and how it compares with a year earlier.
Is a backup offer binding?
Once it becomes primary, it’s generally binding under its terms. Before then, many contracts let you withdraw. Your agent can explain yours.
Do I pay earnest money on a backup offer?
Usually only when it moves into first position, but terms vary.