You made an offer, it was accepted, and you're already thinking about what furniture goes where. Life feels good. But between the contract signing and closing day, things can absolutely fall apart. In fact, the window between "under contract" and "closed" is where most real estate deals encounter their biggest obstacles.

I've seen contracts unravel over inspection findings, appraisal surprises, financing hiccups, and title issues — sometimes just hours before closing. The good news? Most of these problems are predictable, and knowing what to watch for gives you power to fix them or walk away smartly.

Let me walk you through the most common deal breakers and what you can actually do about them.

The Home Inspection: When Red Flags Wave

Buyers are no longer overlooking red flags just to secure a contract. This is especially true in 2026. With mortgage rates higher and buyer competition calmer than it was a few years ago, people are taking home inspections seriously again.

With higher borrowing costs, buyers are stretching further to afford monthly payments, leaving less room for unexpected repairs after closing, making a $5,000 repair feel overwhelming compared to what buyers might have absorbed in the past.

The Major Deal Breakers

Water damage is one of the most common and costly inspection red flags, signaling deeper structural concerns like foundation damage or compromised drainage systems. I've negotiated dozens of water damage situations in Justin, and they rarely end well unless the seller is willing to bring in a professional to address the root cause.

If an inspection reveals foundation issues signaling major structural concerns, including large cracks in walls or floors and sloping floors, foundation repairs can cost tens of thousands of dollars, and buyers may strongly consider walking away.

Outdated or faulty electrical systems can be dangerous, with exposed wiring and outdated panels increasing electrical fire risk, while aluminum wiring is known to be a fire hazard, and a full rewiring job can be expensive and time-consuming. This one comes up constantly in older homes throughout Texas, and insurance companies often won't cover properties with serious electrical issues.

Roof problems are another big one. While some repairs may be minor like replacing flashing, others like full roof replacement are significant expenses, and consulting a qualified roofing professional is strongly advised if an inspector flags roof concerns.

A home's HVAC system affects both comfort and energy efficiency, and if old, inefficient, or poorly maintained, replacement may be needed, with units over 15 to 20 years old requiring replacement that can cost thousands of dollars.

How to Navigate Inspection Issues

If the inspection turns up problems, you have options: negotiate repairs with the seller, ask for a price reduction, or walk away. The inspection contingency, present in 81% of purchase contracts according to NAR, gives buyers leverage to negotiate with sellers.

Here's my advice: Don't try to negotiate everything. Focus on the deal breakers. If the roof needs replacing or the foundation is cracking, that's a serious conversation. If there's a loose door handle, leave it alone. Loose door handles and minor issues are normal, and most buyers expect a used home to have minor imperfections.

In the Justin area, I recommend bringing in specialists for major systems. Don't rely solely on the general home inspector's assessment of electrical, plumbing, or roof issues. Get a licensed contractor's second opinion, which strengthens your negotiating position with real numbers.

The Appraisal Gap: When Value Doesn't Match Price

The inspection can pass with flying colors, but then the appraisal hits. According to a 2024 Zillow survey, 23% of sellers said at least one of their offers fell through because the appraisal was lower than the purchase price.

Here's what happens: Appraisals lower than the contract price can cause a deal to fall through, since a buyer's lender will only lend up to the value of the property, and if the home value appraises lower than the agreed amount, the buyer cannot secure the full mortgage.

Home prices may be increasing faster than comparable sales data reflects, homes without many recent comps can be harder to appraise accurately, and outdated systems or deferred maintenance may lower value.

What to Do About a Low Appraisal

If you're buying and the appraisal comes in low, you have several paths forward.

First, if the buyer or agent believes the appraisal is inaccurate, they can request a reconsideration of value by submitting better comparable sales or correcting errors in the report. This actually works sometimes, particularly if the appraiser missed recent sales or didn't account for improvements.

Second, both buyer and seller can come together to discuss a price adjustment that reflects the appraised value. Sellers who want to keep the deal alive often split the difference rather than lose the entire sale.

Third, if you have the cash, buyers can pay the gap out of pocket, which often happens in competitive markets.

Walking away is always an option too. When all other options are exhausted or prove unviable, walking away from the deal may be the most prudent decision, protecting parties from entering into an agreement that's not financially sound and avoiding over-investment in a property that doesn't appraise for the expected amount.

Financing Falls Through

This is huge. The number one reason a home sale collapses is because the buyer can't secure financing.

You might think pre-approval is a guarantee, but it's not. If a buyer has been pre-approved and has a change in their status such as difference in employment, new negative credit issue, accrual of additional debts, or a change in lender guidelines, the lender can cancel the financing.

I've seen deals die because a buyer changed jobs, made a large purchase that added debt, or even had a late payment hit their credit report between pre-approval and underwriting. One client in the Justin area got approved, then bought a truck during the loan processing period. The truck debt showed up in underwriting, and suddenly they didn't qualify anymore.

As a seller, if you're working with a buyer, ask for proof of pre-approval early. As a buyer, don't make any large purchases or change jobs during the loan process. It sounds obvious, but people do it anyway.

Title Issues and HOA Surprises

If a title search uncovers a cloud on the seller's title to the property or the existence of liens against the property, the buyer may back out of the deal. This is rare, but it happens. A lien from an unpaid contractor, a forgotten mortgage from years ago, or even a boundary dispute can throw everything into chaos.

HOA issues are another sneaky problem. If there is a homeowners' association (HOA) for the development, something in the association's governing documents or financial status could turn out to make the deal a no-go, and pending lawsuits against an HOA can scuttle deals.

Always request the HOA resale package as soon as you're under contract. Don't wait until one week before closing.

The Clock Runs Out

Sometimes deals don't fail because of a major problem — they fail because time ran out. The final mortgage approval being late, an appraisal not being carried out or signed off on time, or closing documents not being ready on time can delay closing, and once the deadline in the parties' purchase agreement passes, the seller may back out to find another buyer.

Real estate is a timeline business. Missing deadlines gives the other party a legal exit. Make sure your lender, title company, and agent are communicating constantly. If something is slipping, raise the alarm immediately.

How to Protect Your Deal

If you're selling in Justin, prepare now. Fix obvious problems before listing. Get a pre-inspection if you can. Price your home based on what it actually appraises for, not what you hope it's worth. Disclose issues honestly. All of this prevents late-stage surprises.

If you're buying, get pre-approved with a reputable lender. Include an inspection contingency in your offer. Don't waive major contingencies just to win a bidding war. And don't change your financial situation during the loan process.

Use HOUSEJET to research properties thoroughly before you even make an offer. Look at comparable sales, understand neighborhood trends, and get a realistic sense of value.

Where I Come In

This is exactly why having a real estate agent who understands Justin's market matters. I've navigated hundreds of deals through inspection negotiations, appraisal disputes, financing hiccups, and deadline crunches. I know which contractors are reliable, which lenders are responsive, and how to spot problems before they become deal killers.

Getting a home under contract is exciting. But closing is what counts. Let's make sure your deal makes it all the way to the finish line.