(One in five deals falls apart—and half of those are because no one double-checked the buyer)

This one’s a huge deal—and the consequences can be brutal. Imagine thinking your home is sold, only to have the deal fall apart days before closing—or worse, right at the closing table. It happens more often than you think.

Here’s the scary stat:
1 in 5 real estate deals falls out of escrow.
And over half of those fall through because of one reason: the buyer couldn’t actually close.

Now technically, this is the agent’s job—to verify that the buyer is truly qualified. But too many agents cut corners, and you, the seller, end up paying the price. That’s why we list this as one of the biggest mistakes sellers can make: not demanding proper financial documentation from the buyer up front.

What to ask for BEFORE accepting an offer:

  1. Proof of funds (bank statement)
    • This shows the buyer actually has the down payment and closing costs
  2. A mortgage pre-approval
    • Not just a pre-qualification. A pre-approval means the lender has:
      • Verified income
      • Pulled credit
      • Factored in taxes and insurance
  3. A homeowners insurance quote
    • Yes, seriously. This is a huge reason deals fall apart last minute.
    • If the insurance quote comes in too high, the buyer might no longer qualify.
    • And guess what? Most buyers don’t get a quote until it’s almost too late.

Why this matters:

Lenders qualify buyers based on the full monthly payment, which includes:

  • Principal
  • Interest
  • Property taxes
  • Homeowners insurance

And with insurance costs skyrocketing in many states, that last piece is blowing up more deals than ever. If the buyer didn’t account for it in their approval, they may no longer qualify—and your deal dies.

House Karma Tip:

Don’t just take your agent’s word for it. Ask to see the documents.
You deserve to know if the buyer is truly qualified—because once you go under contract, the clock is ticking on your next move, your moving plans, and possibly your next home purchase.

One missed detail here can cost you months of time, emotional stress, and potentially the loss of your dream home. There are no guarantees—but this is one you can prevent.

At House Karma, we train our brokers to verify everything up front, because we’ve seen how devastating a last-minute fallout can be. We believe in asking the tough questions—so you don’t get hit with tough consequences.