Mile High Home Group – Welcome to Denver

In today’s Colorado housing market, homes fall out of contract more frequently than in recent years—typically around 15-35% of pending sales, depending on the area and market conditions. After 15+ years in Denver real estate and thousands of transactions, I’ve seen this rate climb from pandemic lows under 15% to current levels driven by financing hurdles, inspection issues, and appraisal gaps.​

Current Trends Across Colorado

Statewide data shows contract fallout aligning with national patterns at about 15% of homes under contract, though Denver metro reports suggest higher rates nearing 35% in some segments. This uptick reflects a shift from frenzied bidding wars to a more balanced market where buyers take longer to decide—homes now average 68 days on market, up 12% year-over-year. In competitive areas like Highlands Ranch real estate or Littleton real estate, fallout often stems from buyers walking when better options appear amid rising inventory.​

Financing remains the top culprit, with mid-6% mortgage rates causing loan approvals to falter during underwriting. Inspection surprises in older Denver homes and appraisal shortfalls in hotter neighborhoods add to the mix, especially as buyers negotiate harder and close 5.7% below list on average.​

Why Deals Fall Apart Now

Several factors converge in Colorado’s unique environment. Rising insurance costs due to wildfire risks blindside buyers late in the process, while HOA special assessments in places like Highlands Ranch can derail agreements. Title issues in historic Denver areas and buyer remorse in a cooling market further contribute. Unlike the low-failure boom years, today’s scrutiny means prepped sellers see higher close rates.​

From my vantage, fallout hurts sellers most—relisted homes often sell for less and linger longer. Yet this buyer leverage creates opportunities for well-priced, transparent listings.

Practical Steps to Avoid Fallout

I guide clients through these strategies to minimize risks:

• Pre-listing inspections: Uncover issues early, giving buyers confidence and reducing renegotiation.​
• Buyer pre-approval verification: Push for detailed loan commitments beyond basic letters to catch financing red flags.​
• Flexible contingencies: Offer credits for repairs or appraisals instead of rigid terms, keeping deals alive.​
• Insurance estimates: Disclose projected costs upfront, especially in high-risk zones.​

In my hands-on approach, reviewing contracts thoroughly and staying communicative through every contingency turns potential failures into smooth closings. Many clients who’ve followed this become long-term friends, their transactions setting the stage for future moves.

If you need honest guidance, real-time market insight, or a no-pressure conversation about navigating contracts in Denver real estate, reach out—I’m here. Visit www.MileHighHomeGroup.net to search properties, explore Denver and beyond, learn more about me, and connect.