What to Know When a Deal Falls Through


Losing a deal is one of the most difficult experiences an investor can have. It can happen that after weeks or even months of pursuing a property, it suddenly disappears. Even though it hurts, this is a necessary aspect of the company. Every investor occasionally loses a difficult venture or experiences an unforeseen setback. Your business and future will be shaped by how you react to it. Pouting and whining will make the time between deals longer. However, if you acknowledge that it is a necessary aspect of conducting business, you will swiftly resume your efforts and expand your network.


Almost everything you do in the real estate industry can teach you something. Managing hardship and unforeseen events is essential to developing a profitable real estate company.

Know Your Deals: No two real estate deals are the same. Each deal has its unique aspects, whether it’s related to the property itself or the seller. It could involve town regulations or title issues. It’s vital to fully understand every detail of the deal beforehand. Discovering a problem months into a three-month deal can be frustrating and costly. Often, losing a deal results from an issue that should have been addressed from the start. When issues arise, it’s crucial to review the deal thoroughly and identify where things went wrong. Don’t let a lack of knowledge about any aspect of the deal cause its failure. Ensure you have a solid grasp of all aspects of your deals.

Be Proactive With Potential Problems: When assessing your deal, you’ll often come across potential issues. Instead of waiting or dealing with them later, tackle them promptly. Some issues with title, insurance, and zoning can take weeks to resolve, and some may never be resolved at all. Instead of spending months on a deal and wasting money, proactive action can save you. Addressing issues head-on may seem bothersome and time-consuming, but you’ll eventually have to face them anyway. Don’t wait for things to clear up or rely on luck. You never know what surprises the future holds. Address the issue promptly to understand the full scope. If the problem outweighs the deal’s value, it’s better to cut your losses and move on to the next opportunity.

Never Assume: We’ve all heard about the dangers of assuming, especially in real estate investing. Many deals fall through because of assumptions. You assume that a wholesaler’s information is accurate. You assume there are no liens on the title. You assume someone else is handling tasks you should be doing. You assume everything will sort itself out, even when you sense trouble ahead. Instead of relying on assumptions, take the time to gather concrete data. It only takes a few minutes to make a phone call, send a text, or write an email. Instead of banking on hope for months of work, seek answers upfront to eliminate uncertainties.

Always Consider The Worst-Case Scenario: In real estate, there’s a distinction between caution and pessimism. A pessimistic person tends to be negative and expects nothing to go their way. On the other hand, a cautious individual considers the worst-case scenario in any situation and is prepared to respond accordingly. Successful coaches always plan several moves ahead, understanding that Plan A may not always succeed. They have backup plans in place for any eventuality, enabling them to act swiftly when needed. They remain composed and decisive, having already anticipated potential challenges and solutions. While the worst-case scenario may rarely occur, being prepared for it is crucial for success.

Face Bad News Head On: As we’ve mentioned, challenges are common in real estate. Many TV investment shows focus on how investors handle unexpected setbacks. When you encounter bad news, it’s best to address it directly. Instead of internalizing it, reach out to everyone involved in the situation—your real estate agent, attorney, partner, buyer, and anyone else with a stake in the deal. These conversations may not always be easy, but addressing them promptly is better than delaying. Not only does it benefit the current deal, but it also maintains your reputation.

Expect a couple of unexpected deals to fall through each year. While it may be disappointing, see it as a learning opportunity. Take away valuable lessons from the experience so you’ll be better prepared if it happens again.

Published by Jeff Anderson

We are your premier real estate solutions team. We solve complex real estate issues.