What Actually Happens During a Real Estate Transaction – And Where Most Deals Fall Apart

Written by:

Alejandra Rodriguez

Date:

06 Mar 2026

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You’ve found the right house, your offer is accepted, and you’re anticipating closing day. But then your lender calls with bad news, a survey reveals a property line dispute, or closing costs turn out to be thousands higher than you expected. Suddenly, your deal is at risk.

Debbie Rice, Owner and Lead Transaction Coordinator with The Star Closers in Florida, manages these situations daily. She oversees the process from contract signing to closing, coordinating inspections, title work, and important deadlines for buyers, sellers, and agents. “We start at contract, and we end at close,” Rice says. Here’s what actually happens during that period – and the most common points where deals fall apart.

Step 1: Contract Signed and Escrow Deposit Due

Who’s Involved: Buyer, seller, agents, title company

Timeline: Deposit due within three to five days of contract signing

Cost: Typically 1% to 3% of the purchase price

Typical Problem: Missing the deposit deadline or sending it to the wrong place can void your contract. If the deposit does not arrive on time, the seller can cancel the contract and put the property back on the market.

Step 2: Financing Contingency Period

Who’s Involved: Buyer, lender, agents

Timeline: Usually 10 days to apply, 30 days for full loan approval

Cost: Appraisal and loan fees vary

Typical Problem: Many buyers believe a pre-qualification letter is enough, but lenders can still deny loans late in the process. Rice has seen deals fall through on closing day when lenders pull approval. If your financing contingency expires before you’re fully approved, you could lose your deposit.

Step 3: Home Inspection and Repairs

Who’s Involved: Buyer, inspector, agents, sometimes contractors

Timeline: Inspection within the first 10 to 15 days; repair negotiations follow

Cost: Inspection costs $300 to $600; repairs vary widely

Typical Problem: Buyers may expect sellers to address every issue found in the inspection, but that is rarely guaranteed. In competitive markets, sellers might reject repair requests and move to the next buyer. Rice recommends completing inspections early and deciding in advance which issues are non-negotiable before making demands.

Step 4: Survey and Title Work

Who’s Involved: Title company, surveyor, buyer, seller

Timeline: Survey and preliminary title report within two to three weeks

Cost: Survey costs $400 to $800; title insurance varies

Typical Problem: Survey encroachments, such as a fence crossing a property line, can complicate or even block a sale. Rice recalls a case in which both the buyer’s and the neighbor’s fences encroached. In this case, the buyers accepted the risk, but not everyone will. Open permits from previous renovations can also delay or stop closings if not resolved promptly.

Step 5: Final Loan Approval and Closing Disclosure

Who’s Involved: Buyer, lender, title company

Timeline: Final approval three to five days before closing; closing disclosure due 3 days prior

Cost: All closing costs are itemized on the disclosure

Typical Problem: Buyers are often surprised by what they see on the closing disclosure. Beyond the down payment, closing costs typically include lender fees, prepaid interest, homeowner’s insurance, property taxes held in escrow, title insurance, and attorney or settlement fees — and these can add up to 5% of the loan amount. Prorated costs, like property taxes or HOA dues the seller has already paid through the end of the month or quarter, can also get passed to the buyer. Review your closing disclosure carefully as soon as it arrives, and ask your lender to explain every charge.

Step 6: Final Walkthrough and Closing

Who’s Involved: Buyer, seller, agents, title company

Timeline: Walkthrough the day before or day of closing; closing takes 1–2 hours

Cost: All funds due at closing

Typical Problem: Two things can derail closing day: being unprepared for the total cash due, and skipping the final walkthrough. Rice has seen buyers who carefully budgeted for their down payment discover at the closing table that they owe thousands more — and couldn’t complete the purchase, losing both the deal and their deposit. The walkthrough is equally important: skipping it can mean missing last-minute issues like missing appliances or new damage from the seller’s move-out. Rice’s team makes sure every final inspection is scheduled and completed to catch these problems before it’s too late.

The Bottom Line

Real estate transactions involve many steps, and even one missed deadline or unexpected fee can put the entire deal at risk. Knowing what to expect at each stage and securing your financing early are the best ways to avoid common pitfalls. Whether a transaction coordinator works with your agent or directly with you, someone must track every detail – because deals can fall apart quickly if they don’t.

About the Expert: Debbie Rice is the Owner and Lead Transaction Coordinator at The Star Closers, a real estate transaction coordination firm serving clients throughout Florida. Rice and her team work with buyers, sellers, and agents from contract signing through closing, managing inspections, title work, deadlines, and documentation to keep deals on track.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.