When a Home Sale Falls Through, What Now?

2. Ask your agent what happens to the earnest money

When a buyer backs out, one of the first financial questions that comes up is: What happens to their deposit?

Earnest money — typically 1% to 3% of the purchase price — is the buyer’s way of showing you they’re serious about the deal. If they walk away for a reason not covered by a contingency, you may be entitled to keep those funds.

On the other hand, if the contract included a valid inspection, appraisal, or financing contingency and the buyer exercised it properly, they’re likely to get their earnest money back.

Your real estate agent can help you understand what’s outlined in your purchase agreement and whether you are entitled to any of this money. While it’s not a replacement for a successful sale, recouping earnest money can at least offset a few of the costs you’ve taken on while preparing to sell.

»Learn more: When Can a Buyer Get Their Earnest Money Back?

3. Decide whether you can fix the issue

As the seller, there are some things you can’t “fix” when a deal falls through, such as the buyer’s home sale contingency, a financing failure, or buyer remorse. But if it’s something you can correct or improve, now you know. You won’t let the same dealbreaker surface a second time.

If the buyer backed out because of repair concerns, have your agent follow up to learn what specifically raised alarm. You might choose to fix those items, adjust your price, or offer a credit to future buyers. (See our Red flag list below.)

If it was a low appraisal, ask your agent to review recent comparable sales. If the price was too high for the market, you may need to make an adjustment. If the appraiser missed key comps, you might have a case for challenging the report.

If a title surprise was the culprit, contact a title company or real estate attorney to help you resolve the issue, be it a recently discovered lien or an unclear ownership document. However, these things often take time.

If it was a buyer issue related to affordability, ask your agent about creative concessions you might be willing to offer, such as buying down the buyer’s interest rate rather than lowering your selling price.

»Learn more: Seller Concession Examples to Help Close a Sale

Red flag list of home issues that can frighten buyers away:

• [  ] Cracked foundation, ceilings, or walls
• [  ] Termites or other wood-destroying pests
• [  ] Outdated, low-quality, or broken kitchen appliances
• [  ] Inefficient or poorly maintained HVAC systems
• [  ] Presence of mold, radon, or other hazardous materials
• [  ] An old, sagging, or damaged roof
• [  ] Signs of water damage or flooding
• [  ] Plumbing or electrical problems
• [  ] Perceived safety concerns
• [  ] Odd or unpleasant odors such as cigarette smoke
• [  ] Excessive pet damage
• [  ] Bad repairs or renovations with poor workmanship

4. Explore alternatives to a traditional re-list

If your home sale falls through and you’re thrust into a complex next-move situation, you might not have the time to go through another round of listing and showing your home. Here are two options you might consider so you can move forward:

• Buy before you sell: If you’re trying to secure your next home and don’t want to lose an opportunity on a house you love, HomeLight’s Buy Before You Sell program can give you the power to buy with confidence. You get access to a portion of your home’s equity upfront, so you can move in without waiting for a new buyer. See this short video to learn more.
• Sell for cash with less hassle: If you’re facing urgent timelines — a job relocation, divorce, or helping a parent move into assisted care — a cash offer may be the cleanest path forward. With HomeLight’s Simple Sale platform, you can receive a no-obligation all-cash offer in 24 hours and sell in as few as 10 days with no showings, no repairs, and no waiting around for financing approvals.

»Learn more: I Need to Sell My House Fast, What Are My Options?

5. Get your listing back on the market quickly

If you’re ready to stay the course and re-list your home traditionally, speed matters. The longer your home sits idle after a failed deal, the more questions future buyers may ask. A property with longer days on market (DOM) can develop a negative stigma among buyers and their agents, and sell for less money.

Here are some things you can do to help reset the momentum:

• Update the listing, even slightly: If there’s new photography, a refreshed description, or a price adjustment, it can signal a fresh start and spark new interest.
• Be transparent about the fallout: If a buyer or their agent asks why the previous deal collapsed, your agent should have a clear, honest answer that puts future buyers at ease. This might include documentation showing repairs you’ve made.
• Re-engage interested parties. Ask your agent to contact any buyers who showed strong interest the first time around. One of them may be ready to make a move now.

»Learn more: Pros and Cons of Re-listing Your Home

6. Consider if you might need a new agent

Sometimes a sale falls through due to circumstances no one could have prevented. But in other cases, a rocky experience with an agent can play a role. You may decide it’s necessary to switch agents if the agent’s communication or strategy failed you.

Signs it might be time for a change:

• You had trouble getting timely updates or clear answers.
• Your agent wasn’t proactive during negotiations or problem-solving.
• You felt pressured into accepting an offer without understanding the risks.
• You’re no longer confident in their strategy to market and sell your home.
• You and your agent just don’t connect.

If any of this sounds familiar, it may be time to find a new agent who can guide your sale with stronger communication, local market knowledge, and a better plan.

HomeLight’s free Agent Matching tool can connect you with proven top-performing agents in your area, with no obligation to commit. We analyze over 27 million transactions and thousands of reviews to help you find the best agent for your needs.

»Learn more: 12 Signs of a Bad Agent (And What to Do About It)

7. Rethink your timeline and next home plans

A canceled home sale can cause a ripple effect, especially if you were already under contract to buy your next place. The pause might feel frustrating, but this is a good moment to revisit your timeline and regroup.

What to consider:

• Talk to your lender. If your mortgage pre-approval was tied to the sale of your current home, ask what adjustments can be made.
• Check with the seller of your next home. They may be open to extending your closing timeline if you’re still interested in moving forward.
• Maintain a moving-plan checklist. Keeping a checklist with contacts and actions will help you track what needs to be done if your sale falls through. If you’ve scheduled movers, canceled utilities, or forwarded your mail, be certain to contact these groups right away.

»Learn more: How to Buy a House Before You Sell Yours

8. Stay emotionally grounded and focused

When a deal falls apart — especially late in the process — it’s easy to feel defeated. But this is a temporary setback, not a permanent loss. Stay focused on the goal.

You’ve already done the hard work of preparing your home and getting it market-ready. You may even walk away with insights that lead to a better offer or smoother experience the second time around.

Take a breath, talk through the next steps with your agent, and remind yourself that you still own a property that buyers want. And your next successful sale might already be in motion.

»Learn more: 6 Top Things That Help Sell A House

Your next offer could be the right one

While a canceled home sale is never ideal, it’s also not uncommon, and it doesn’t have to derail your plans. Find out what went wrong, know your options, and take action to recover. You’ll be in a stronger position the next time around.

Whether you choose to re-list, sell to a cash buyer, or explore a Buy Before You Sell option, HomeLight is here to help you turn the page. The right buyer with the right deal is still out there.

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