My Buyer Cancelled. What Do I Do Now?

Why did my buyer cancel, and does it mean something is wrong with my home?

Not always. Buyers cancel for three kinds of reasons. Some are about the house: a sewer line, a roof, a foundation question. Some are about the buyer: nerves, a change in their loan, a family need. And some are about the deal: an ask the seller would not meet.

The first kind matters most, because the next buyer will find the same thing. The second kind has nothing to do with you. I read the reason before I do anything else.

What should I do in the first week?

Get the cancellation reason in writing from the buyer's agent. Ask for the inspection report and any repair requests. Then decide which bucket it falls in.

If it is the house, we deal with it before the next buyer does. In one Chandler sale, a sewer line issue and an aging roof ended the first escrow. We hydro-jetted and rescoped the line, so the next buyer saw a known problem with a known price instead of a scary unknown. If it is the buyer, we relist and move on.

Read the full story: how a Chandler seller closed on the third escrow.

Should I fix the big item and relist higher?

Usually not. Buyers and appraisers expect a roof to be sound, so a new one rarely raises the price by what it costs. You spend the money either way and add months of carrying costs. A credit at closing often gets you to the same finish line faster. It is still your call, and I will run the numbers with you.

Should I share the old inspection reports with the next buyer?

I send them to serious buyers before they write an offer. A buyer who has already decided to write an offer takes bad news better than a buyer scrolling listings. They go in informed, and fewer deals die in the inspection period.

More on how the whole sale runs: how your home gets sold.

How does buying before you sell change this?

If you are moving up, a cancelled escrow can feel like a threat. A deadline to buy makes sellers take weaker offers to beat the clock. Some families plan around that by buying first, using a bridge loan or family help, so the old home can sell on its own timeline.

It costs a fee, and two homes cost real money each month. It also beat moving twice and renting in between for the Chandler family in that story. It is not right for everyone, and I will tell you if it is not right for you. See how I work with buyers.

Questions sellers ask after a cancellation

What should a seller do right after a buyer cancels?

Read the reason first. If an inspection finding caused it, deal with it before the next buyer finds it. If it was personal or an unreasonable ask, relist and move on.

Will a cancelled escrow hurt my price?

Not by itself. What matters is whether the cause was the house and whether it has been handled. A known issue with a clear plan sells.

Does the seller keep the earnest money?

Usually not. A buyer can generally cancel for any reason during the inspection period and get the deposit back. Check your contract and talk with your agent and the title company before you assume anything.

Can I relist right away?

Often yes, once the reason is understood and any repair or credit plan is ready. Relisting before you have a plan can repeat the same cancellation.

Ben Graham, real estate advisor serving South Tempe and South Chandler. REALTOR since 2011 with more than 500 homes sold, including move-up families who bought first and sold second.

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