More buyers are walking away from home purchases than we’ve seen in years — and it’s starting to
show up even in markets like Montana. According to Redfin’s August 2025 data, roughly 56,000
home-purchase agreements were canceled nationwide, about 15.1% of all deals that went under
contract that month — the highest August rate since tracking began in 2017. That means 1 in 7 buyers
who say “yes” are later saying “never mind.”
1. Inspections Are Killing Deals
The biggest reason buyers back out right now is inspection fallout — it accounted for about 70% of all
cancellations in Redfin’s survey. Buyers are using inspection reports as leverage. Some demand
unrealistic repairs; others simply walk when they see maintenance costs they didn’t plan for. Even
when sellers fix the issues, the buyer may still get cold feet. Montana Angle: Older homes and harsh
weather make inspection items common — roof age, foundations, and heating systems often trigger
renegotiations. A pre-listing inspection can help sellers avoid these surprises.
2. Financing and Appraisals Are Falling Through
Roughly 28% of cancellations happen because of financing issues — rate jumps, tighter underwriting,
or low appraisals. Montana Angle: In smaller markets, fewer comps mean appraisals can come in low,
forcing buyers to find more cash or back out.
3. Buyers Are Struggling to Sell Their Current Homes
About 1 in 5 deals fail because buyers can’t sell their existing home in time. Montana Angle: This
especially affects move-up buyers in Billings, Bozeman, and Missoula. They depend on selling their
first home to fund the next one, so a delayed sale can domino the entire transaction.
4. Financial Fear & “Better Options” Syndrome
Nearly 13–15% of buyers cancel for emotional or financial reasons — job uncertainty, stock dips, or
finding another property they like better. Montana Angle: As inventory grows, buyers feel less pressure
and more freedom to walk if something else catches their eye.
What This Means for Montana Sellers
If you’re building, selling, or listing in Montana right now, here’s the playbook to keep deals from
collapsing:
1. Pre-Inspect Before You List — Know your issues before buyers do and fix small stuff
upfront.
2. Require Strong Pre-Approvals — Don’t accept “pre-qualified.” Get proof of funds or
underwriting done.
3. Tighten Contingency Windows — Shorten inspection and financing deadlines to
reduce risk.
4. Prepare for Renegotiation — Offer small credits rather than large price cuts. 5. Stay
Emotionally Neutral — Keep your property show-ready and move quickly to the next buyer.
The Big Picture
Montana’s market is cooling from the chaos of 2021–2023 but remains strong. Prices are up around
2.4% year-over-year, and quality homes are still selling — but buyers are cautious, lenders are strict,
and deals are fragile. The sellers who win are the ones who anticipate friction, not those caught off
guard. Bottom Line: Buyers cancel for emotional, financial, and logistical reasons — not just because of
you. But in a market shifting toward balance, the most prepared seller still controls the outcome.
