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One frequent side effect of a more uncertain market is an increasing number of buyers getting cold feet. According to a report from Newsweek, nearly 16 percent of purchases fell through in July 2024, the most since 2017.
The reasons that buyers cancel a purchase at the last minute can range from anxiety about the market to trepidation about taking on financial obligations to a nagging feeling that a more perfect home might be out there. Some of these anxieties are rational, while others are less so.
It usually falls upon the buyer’s agent to be the voice of reason, talking them through their fears and helping them remember why they felt the home was a good choice to begin with. Part financial advisor, part therapist and part friend, it’s a delicate role to play, but often a necessary one. Let’s take a closer look at how to navigate a buyer’s cold feet without derailing the transaction.
Listen
Agents should start by simply listening to buyers and their concerns. Sometimes, they may just need to vent and will feel better about moving forward with the purchase after they’ve gotten their fears off their chest.
If they have specific complaints or fears, this is the time to identify them so you can respond effectively. The buyer may not say precisely or truthfully why they want to pull out of the sale, so listen closely and use your relationship with them to gather as much information as you can.
Zoom in on the market
A common refrain from wavering buyers is, “What if home prices drop right after I buy?” This fear isn’t always unfounded; in the wake of the 2008 financial crash, many homeowners were stuck with underwater mortgages. It can happen, but in 2025, it’s not very likely.
It can be tremendously reassuring to remind a skittish buyer that the people who are working on the ground and who see the market up close every day are bullish about the future.
Crunch the numbers
Another common buyer fear is that they won’t be able to meet all their new financial obligations. Many buyers are transitioning from apartment life to homeownership, and the shift from paying rent to paying a mortgage, home insurance, maintenance and property taxes can be intimidating, especially for people who are buying at the top of their budget.
But they’ve almost certainly done the math already and determined that they can afford the home. All you need to do is remind them. In moments like this, hard numbers are far more comforting than vague platitudes. Sit the buyer down and go over their projected homeownership expenses, and show them how it fits into their larger financial picture.
The general rule for buyers is that all their homeownership expenses, including their mortgage payment, insurance, taxes, HOA fees and utilities, should add up to no more than 28 percent to 30 percent of their household income. If their projected expenses are less than that, this is ideal. If they’re a little higher, that’s still reasonable in many cases. However, If their expenses are much higher than 28 percent, it’s possible they might be buying too much house.
It can also help to break things down to the actual monthly cost they’d be paying. That smaller monthly number is a lot less intimidating than the six-figure price they’re committing to.
Remind them what made them fall in love with the home
Some buyers become so fixated on the obligations and “what ifs” that they forget about all the positive aspects of moving into their dream home.
Touch on the general benefits of homeownership, such as building up equity, becoming part of a community, physical and financial security, and others. But also list the specific things they love about the home, whether that’s the great local schools, the extra space or the proximity to their job. Accentuating the positives can make the negatives recede a little.
Address FOMO
One of the most common causes of cold feet in buyers is the worry that they’re missing out on a more perfect home by committing to this one. This can be one of the hardest anxieties to address because you’re essentially arguing against an ideal home that only exists in the buyer’s imagination.
For starters, bring the discussion back down to earth. Look at the house they’re buying and remind them that it meets most, if not all, of their needs. Assuming they’ve done a careful, well-considered home search, remind them that the home they’re buying is the best choice out of all real possibilities.
Go over their list of “must haves” and “deal breakers” to refresh their memory. Help them understand their home purchase isn’t about finding the perfect house so much as it’s about finding a house that will meet all their important needs. This is a mindset shift more than anything— remind them that the perfect is the enemy of the good.
Tackle price anxiety
In today’s hot market, many buyers, especially if they’ve just triumphed in a bidding war, may worry that they’re paying too much. This is a relatively easy worry to address since you can bring out comparables showing that similar homes are selling for similar prices.
If that’s not enough, explain that the lender’s appraisal is an objective, third-party assessment of the home’s value that’s put in place to guard against overpaying. The home’s appraised value is as close as you can get to an objective “real” value of the home, and since they’re typically not paying more than the appraisal, they’re not overpaying.
You could also just fall back on simple supply and demand explanations. If the home received more than just your buyer’s offer, the market has determined that the home is properly priced.
Remind them that the purchase agreement may be legally binding
Finally, if the buyer has cold feet after they’ve already signed the purchase agreement and passed important contingency periods, gently remind them that they’ve signed a legally binding contract.
Sometimes, that’s the only nudge a buyer needs to reaffirm their decision and commitment. Those who pull out in a way not prescribed by the contract could risk losing their earnest money, which can reach into the tens of thousands for pricier homes.
Luke Babich is the CEO of Clever Real Estate in St. Louis. Connect with him on Facebook or Twitter.