What Can Kill a Real Estate Deal on the Big Island of Hawaii?

You’ve accepted an offer…

Everything looks good…

And then suddenly… the deal falls apart.

It happens more often than sellers expect.

If you’re selling on theBig Island of Hawaii, knowing what can derail a deal helps you avoid costly surprises.

Julie Wettstein, Realtor RB-21086, helps Big Island homeowners keep transactions on track by identifying risks early and managing them before they become problems.

The Truth Most Sellers Don’t Hear

Even after you accept an offer…

The deal is not guaranteed to close.

There are several points where things can go wrong.

Let’s break down the most common ones.

1. The Home Inspection

This is the biggest deal-breaker.

Buyers may discover:

• Roof issues

• Termite damage

• Plumbing or electrical problems

• Deferred maintenance

What happens next:

• They request repairs or credits

• They renegotiate

• Or they walk away

Even small issues can create hesitation if not handled correctly.

2. Appraisal Problems

If the buyer is using a loan:

• The home must appraise at the purchase price

If it comes in low:

• The buyer may ask for a price reduction

• They may not be able to secure financing

• The deal may fall apart

This is common in shifting markets.

3. Financing Issues

Even pre-approved buyers can run into problems.

Things that can go wrong:

• Changes in the buyer’s financial situation

• Loan denial during underwriting

• Delays in approval

This can stop a deal completely.

4. Buyer Contingencies

Most contracts include contingencies like:

• Inspection

• Financing

• Sale of another home

During these periods:

The buyer can legally back out.

This is one of the most misunderstood parts of the process.

5. Title or Property Issues

Unexpected issues can show up, like:

• Liens

• Ownership discrepancies

• Easement problems

• Permit issues

These can delay or derail closing if not resolved.

6. Insurance Challenges (Important in Hawaii)

On the Big Island, insurance can sometimes be a factor.

Buyers may struggle with:

• Coverage availability

• Cost concerns

• Location-related risks

If they can’t secure insurance, the deal can stall.

7. Poor Communication or Missed Deadlines

Real estate contracts have timelines.

Missing deadlines can:

• Create confusion

• Give buyers an exit

• Delay closing

Staying organized matters.

Real Example

A seller in Hilo accepted a strong offer.

During inspection:

• A few issues came up

• The buyer requested repairs

Instead of pushing back hard, we negotiated a reasonable credit.

Result:

• Buyer stayed committed

• Deal stayed intact

• Closed successfully

Handling issues the right way kept everything moving.

Biggest Mistake Sellers Make

Thinking the deal is “done” after accepting the offer.

It’s not.

The deal is only done when:

You close.

How to Protect Your Sale

You can reduce risk by:

• Pricing your home correctly

• Preparing the property before listing

• Disclosing issues upfront

• Choosing strong buyers

• Managing the process carefully

Most deal-breakers can be prevented or handled.

FAQ

How often do deals fall apart?

It varies, but it’s not uncommon during inspection or financing stages.

Can I avoid inspection issues?

You can reduce risk by preparing the home and disclosing known issues.

Is cash safer than financed offers?

Often yes, but terms still matter.

What’s the safest type of offer?

Strong financing, fewer contingencies, and realistic terms.

Next Step

If you’re planning to sell, the best move is understanding these risks before you list.

That way, when offers come in…

You know how to protect your deal.

Julie Wettstein, Broker RB-21086
Island Homes by Scuba Julie
Big Island, Hawaii
(808) 345-6934
BigIslandDreamHomes.com
[email protected]