How to Avoid a Deal Falling Through Due to Contingencies in Phoenix

Nervous about something going wrong before your real estate deal closes? It’s a valid concern. With so many moving parts, it's not uncommon for real estate contracts to hit snags—but that doesn’t mean your deal has to fall apart.

Whether you're buying or selling in Phoenix, understanding how to handle contingencies and deadlines can make the difference between a smooth closing and a deal that crashes.

What Are Contingencies, and Why Do They Matter?

Contingencies are the "if this, then that" parts of your contract. They’re the conditions that need to be met for the transaction to move forward. If something unexpected happens—like the home inspection turns up a problem or the buyer’s financing falls through—the deal could be canceled.

Here are the main ones:

• Home inspection
• Appraisal
• Loan approval
• Title, HOA, and seller disclosure review

Each one has a deadline. If things aren’t addressed on time, either side could be locked in or lose their right to cancel.

Know Your Deadlines (Because They’re Not Flexible)

Home Inspection

Buyers get 10 calendar days to inspect the property after the contract is signed. During this time, they can cancel, negotiate repairs, or accept the home as-is. But once that window closes, the buyer loses that flexibility.

Appraisal

If the home appraises below the offer price and the buyer is getting a loan, they have 5 days to cancel unless other terms are worked out (like lowering the price or covering the difference).

Financing

If the buyer’s loan isn’t approved by the deadline, they can usually cancel without penalty—but only if they’ve been actively working with their lender.

Title and HOA Review

If any red flags show up in the title report, HOA rules, or seller disclosures, buyers have 5 days after reviewing those documents to cancel—unless they fall within the inspection window.

What Trips Up Buyers and Sellers (and How to Avoid It)

1. Financing Delays

Lenders dragging their feet can delay closings or kill deals.

✅ Buyers: Get fully pre-approved and choose a lender who communicates quickly. Chelsey works with pros who hit every deadline.

2. Major Inspection Issues

Things like roof damage, foundation cracks, or outdated systems can scare buyers.

✅ Sellers: Fix obvious issues before listing and be prepared for reasonable repair requests.

✅ Buyers: Don’t expect a perfect house. Use the inspection to negotiate, not nitpick.

3. Appraisal Surprises

While low appraisals aren’t common right now, they do happen occasionally—especially in fast-moving or unique neighborhoods.

✅ Both sides: Be ready to talk through options calmly. You can lower the price, increase the down payment, or split the difference.

4. Communication Gaps

Assumptions and verbal agreements that aren’t put in writing can lead to misunderstandings.

✅ Everyone: Put everything in writing. Use proper forms and review updates with your agent.

Tips for Sellers to Keep a Deal Together

• Price strategically. Overpricing invites appraisal issues and inspection walkaways.
• Stay flexible. A credit for repairs or a small concession might keep the deal together and save you from relisting.
• Respond quickly. Don’t let repair requests or appraisal notices sit for days.
• Keep the house show-ready and clean for appraisers, inspectors, and buyers.

Chelsey's Take: "As a seller, it's not just about getting an offer—it's about keeping it alive through every stage. A little flexibility and solid communication go a long way."

What If You’re Paying Cash or Using a VA/FHA Loan?

Cash Buyers don’t have to worry about loan approval or appraisal timelines, but they still have the right to inspect the home and review disclosures.

VA/FHA Buyers may face more strict appraisal conditions and required repairs. Also, once a VA or FHA appraisal is done, that value sticks to the property for 6 months, which can affect future deals if the sale falls through.

Final Word from Chelsey

"Every deal has its hurdles, but none of them are impossible to overcome. The key is understanding what’s ahead, being proactive, and working with a real estate professional who knows the Phoenix market inside and out. I help my clients get ahead of problems before they become deal-breakers."

Let’s Make Your Move Smooth

Ready to buy or sell without worrying about surprise cancellations? Chelsey Hernandez helps clients across Greater Phoenix close with confidence, guiding you through every deadline, contingency, and detail.

Visit www.chelseyhernandez.com to schedule your strategy session.

#MoveInMoveUp #ChelseyHernandez #MyHomeGroup #PhoenixRealEstate #PhoenixRealtor #RealEstateTips #HomeBuyingPhoenix #HomeSellingPhoenix #AvoidDealBreakers