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The Real Deal on Contract Terminations and Distressed Sales

By Brittany Rhoades posted 07-31-2025 12:43 PM

  

From NAR

Not every contract makes it to closing, but the numbers aren’t as scary as they seem. About 6–7% of deals fall through, often because of appraisal or financing delays—not major market problems. Distressed sales like foreclosures stay low, around 3%, and haven’t jumped recently.

For REALTORS®, this means most transactions close successfully, even if some take longer than expected. Knowing what causes delays can help you manage client expectations and keep deals on track.

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