According to Trulia, the percentage of real estate contracts that fail for any reason, including a poor home inspection, is 3.9%. That means that 96.1% of contracts reach the target, which are pretty good odds for any offer. According to mortgage giant Fannie Mae, only 5% of home appraisals are low. However, CoreLogic research indicates that the figure is actually close to 20% in today's market.
The duration of the contingency is determined on a case-by-case basis and will depend on the type of contingencies found in the offer. The contingent period usually lasts between 30 and 60 days. If you have a mortgage contingency, the buyer's due date is usually about a week before closing. In general, a home remains in contingent condition for the specified period or until contingencies are met and the buyer closes the purchase of their new home.
The frequency of failures changes from month to month, so there is no main figure. However, in recent years, there have been times when half of all property sales have failed after the sale has been agreed, while on other occasions, the figure is somewhere between 20 and 30%.
