- 32% of real estate purchase contracts face delays before closing, often due to preventable issues.
- Financing problems are the leading cause of closing failures, affecting 22% of delayed transactions.
- Appraisal and inspection disputes create roadblocks for 1 in 4 buyers, according to Zillow research.
- Poor communication between stakeholders significantly increases the risk of missed deadlines and missteps.
- Agents who proactively educate clients and manage process rigor—like Steve Hawks—lower deal failure rates dramatically.
Closing a real estate deal successfully means more than just showing houses and writing offers. It’s about getting the deal done without problems. Even with a lot of work at the start, many deals get delayed or fall apart. To help keep your client from getting upset, you need to know the common problems, things like financing issues, appraisal delays, or not talking clearly. Then use methods that work to protect the deal. Here’s how the best agents steer clear of the usual troubles and get more deals closed.
Why Real Estate Closings Fail So Often
Closing a real estate deal has many steps. It doesn’t just involve the buyer and seller. It also brings in lenders, inspectors, appraisers, title companies, and lawyers. If one thing goes wrong, it can cause problems for everything else, leading to expensive delays or the deal not closing.
Some common reasons why real estate deals don’t close include
- Financing troubles: Getting approved earlier falls apart, credit scores change, or needed papers are missing.
- Appraisal conflicts: The amount the lender says the home is worth is less than the price, which puts the loan approval at risk.
- Title problems and legal red flags: Things like debts on the house, disagreements, or missing signatures can completely stop the closing.
- Poor communication: When agents, buyers, sellers, and others don’t understand each other, it breaks trust and messes up schedules.
You can often see these problems coming before closing day. Good agents learn to spot risks early and use methods that keep things moving. This isn’t luck; it’s a plan.
Financing Issues: The Most Common Deal Killer
The National Association of Realtors says 22% of deal delays happen because of financing problems. In a market where being fast and sure matters, financing holdups are still the main reason deals don’t close or get delayed.
Common Financing Pitfalls
- Buyer’s credit score drops: Buying a new car or missing a credit card payment can make it harder to get a mortgage, even after getting pre-approved.
- Paperwork not sent in or incorrect: Missing tax returns, income details, or checking your ID slow down the loan review.
- Problems found by the underwriter: Lenders check finances more closely at the end and might find mistakes or things that don’t match up.
How to Safeguard Your Real Estate Deal
- Tell clients early: A lot of buyers don’t know they should stop big money moves once they agree to buy a home. Be sure to tell them this.
- Push for full pre-approval: Getting pre-qualified is just a rough guess. Only pre-approvals mean something when you put in an offer.
- Stay in touch with the lender: With the client’s OK, talk to the lender often to spot problems before they get big.
- Add time buffers: Use longer periods for financing conditions or have backup ways to pay for deals that are close to falling apart.
If financing is late right before closing, it can make the whole real estate deal fall apart. Thinking ahead about these problems helps keep things moving.
Communication Breakdowns That Derail Closings
Talking clearly builds trust. In real estate, it also helps things move forward. Real estate deals are often delayed or fail because people don’t understand each other or information gets stuck between different people involved.
What Happens When Communication Fails?
- Slow decisions on conditions: If one person doesn’t answer in time, the other person can pull out.
- Different ideas about what to do: Buyers and sellers don’t understand what they are supposed to do, which causes problems.
- Emotions get higher: The closer you get to closing, the more feelings are involved. Not talking or being unclear can make worries much worse.
How to Create Communication
- Say what to expect early: Make a plan for how everyone will talk to each other at the start. Decide who does what and how often to share news.
- Use technology: Sharing platforms (like Dotloop, Trello, Monday.com, or Google Sheets) let everyone see what’s happening easily.
- Give updates often: Even if nothing is new, tell the client weekly. If they don’t hear from you, they might trust you less, fast.
Talking well isn’t about saying a lot, but saying things clearly. Getting information on time helps things get done faster and makes people happier. These are key signs of success when closing real estate deals.
Legal and Contractual Pitfalls
Even small errors in how a contract is written or signed can stop a real estate deal from closing. While these issues might seem like just paperwork, they have serious legal effects.
Key Legal and Documentation Risks
- Missing initials or signatures: Small mistakes can make the title company or lender say no to the final OKs.
- Conditions not understood: Buyers or sellers don’t meet the dates they agreed on, which cancels the contract.
- Forgotten changes: Last-minute updates not written down the right way can mean the deal cannot be enforced.
How to Avoid Last-Minute Legal Obstacles
- Check contracts two or three times using checklists.
- Tell your client about parts of the contract so they aren’t surprised.
- Ask a real estate lawyer for help if the writing is hard to understand or there’s a fight.
When contracts break down, people stop trusting each other. If a deal fails, it can lead to complaints, lawsuits, and hurt your good name.
Preparing the Deal for a Smooth Closing
Getting ready early is what makes experienced agents different from new ones. After your offer is accepted, you have a time limit. It’s not a relaxed walk.
Strategic Planning Tactics
- Get your client ready well
- Explain how escrow works, the loan schedule, inspections needed, and government papers.
- Tell them what you expect them to do—what they must sign, choose, and get ready.
- Put key dates on the calendar
- Dates for inspections, appraisal visits, title review deadlines, and when conditions are removed.
- Work with everyone involved
- Introduce yourself and match up schedules with title officers, appraisers, lenders, and inspectors.
Pro Tip
Put the exact contract dates in shared calendars. Google Calendar invites can help people remember dates and tasks.
Agents who think two weeks ahead rarely scramble the day before closing.
Closing Techniques That Actually Work
Plenty of real estate agents know how to get clients—but have trouble closing deals. When people hesitate, especially in emotional deals like buying a home, using smart ways to close can decide if you succeed or fail.
Four Ways to Close Real Estate Deals That Work
- The “Yes or Yes” Close
- Give two good choices instead of asking for a “yes” or “no.”
- Example: “Do you want to sign by Friday morning or Friday afternoon?”
- The “Ticking Clock” Method
- Show why there’s a real need to act based on facts.
- Example: “There are 30% fewer homes for sale, and two people already saw this one today. It will go fast.”
- The “Sleep On It” Close
- Agree that it’s a big choice, but don’t let them forget about it.
- Example: “Think about it tonight. I’ll call tomorrow, and we can talk about any new questions.”
- The Act-Like-It’s-Happening Close
- Be confident and keep moving forward.
- Example: “Let me set up the appraisal now; we need that to stay on schedule.”
These are not pushy sales tricks. They are ways to help buyers feel sure and comfortable. If you do them right, they show you are leading, not just trying to trick someone.
Managing Appraisal Gaps and Inspection Disputes
When the market is busy or changing, facts about nearby homes that sold often don’t keep up with how many people want to buy homes. This causes appraisal gaps, meaning the value the appraiser gives is less than the price you agreed on.
The Zillow’s 2022 Consumer Housing Trends Report says that 25% of buyers named appraisals or inspections as big problems in their deals.
Handling Appraisal Gaps
- Ask for a lower price: Sellers might agree to lower the price partway.
- Ask the appraiser to look again: Your agent can send more info about sales nearby to make a case for a different value.
- Pay the difference with cash: Buyers can put down more money to cover the amount that’s missing.
Dealing with Inspection Problems
In places like Las Vegas, problems you see often include
- Roofs wearing out because of very strong sun.
- Air conditioning not working well from the desert heat.
- Cracks in the foundation from dry dirt.
What you can do:
- Money back for repairs: This is easier than doing a lot of repairs before closing.
- Change the price: Based on what the inspection found.
- Sign off knowing the issues: Some buyers accept the house the way it is when there are many buyers.
The best thing to do is tell people early that no house is perfect. Also, show how buyers can be okay with changing things.
Dealing with Problems at the Last Minute
You’re almost done. But then maybe the lender can’t give the money, a seller leaves town without signing papers, or a debt you didn’t know about shows up. It happens.
Things That Often Cause Problems at the Last Minute
- Money transfer delays: Lenders are late sending the money, mainly near holidays.
- No ID: Someone doesn’t bring their ID to sign, which slows down getting the papers made official.
- Title problems still there: A debt on the house or a name difference shows up late.
Ways to Stay Ready
- Other lenders to use: Make a list of lending people who answer quickly and can move fast.
- Easy to reach a real estate lawyer: To quickly understand papers or help settle problems.
- Get the client ready in their head: When you talk early, say, “There might be things we don’t expect, but we usually fix them.”
The main thing is to stay calm, not get mixed up. How you act helps your client stay steady, mainly when things go wrong that no one saw coming.
Getting the Real Estate Deal Done: The Right Way
Closing day is your final act as a guide—and your move into being a long-term advisor. It’s also when being ready can show, or fall flat.
The Agent’s Final Day Checklist
- Check appointments: Make sure everyone—title agent, notary, clients—agrees on the time and place.
- Go over the Closing Disclosure (CD): Read it line by line with buyers and sellers so there are no bad surprises.
- Check if papers are ready
- IDs are good and there.
- Confirmations for sending money, money going to the seller, and papers to change ownership are all ready.
- Celebrate
- Small gifts, thank-you notes, or just saying congratulations in person leave a good final feeling.
Doing more than expected on closing day helps you get referrals and repeat business. It’s not about just one deal; it’s about the connections you make for later.
What Steve Hawks Shows Us About Closing Deals Well
Steve Hawks, a real estate expert based in Las Vegas, is known for closing over 4,000 homes—and becoming one of the area’s most trusted agents.
Why He Closes More Deals Than Others
- Tells Clients Early: Steve shows every client how things work long before they make an offer.
- Clear Steps: He uses a method with checklists, which cuts down on mistakes people might make in each part of the deal.
- Knows the Market: In Las Vegas, Steve understands when the market changes, like when investors are buying or builders offer deals, or when storms cause delays.
But the most important thing: he builds trust. When clients feel like you listen, they are ready, and you’ve got their back, they don’t freak out when things get tough. They finish the deal.
Conclusion
If you’re a new agent or one with lots of experience, getting real estate deals closed well isn’t about trying harder. It’s about getting ready in a better way. It matters how you help your clients understand what to expect with money and how you handle problems that come up at the last minute. Every step of the process affects if a deal closes or falls apart. As Steve Hawks’ amazing history shows, getting deals closed the right way depends on talking clearly, being exact, and really paying attention to small things. Keep your systems running well, tell your clients what’s happening, and have strong working relationships. Then you’ll get more deals closed and people will trust you more.