August 14, 2026

70% of deals are falling out on inspection. The fix is a conversation you're not having.

Roughly 70% of pending deals are falling out on inspection. KCN's Smooth Move program uses upfront inspections and pay-at-closing vendors to prevent it.

By Kristan Cole Network

70% of deals are falling out on inspection. The fix is a conversation you're not having.

Key takeaways

  • Roughly 70% of pending deals are currently falling out on inspection. Pending counts are the lowest in 16 years.
  • Most of that fallout is preventable. It comes from an inspection conversation the listing agent never had with the seller.
  • KCN's Smooth Move program requires an upfront home inspection before the property lists.
  • The program uses vendors that can complete repairs and wait until closing for payment, so a fixable issue never becomes a dead deal.

Why are 70% of deals falling out on inspection?

Roughly 70% of pending deals are falling apart on inspection, and pending counts overall are the lowest they have been in 16 years. The reason is not the market. The reason is that the inspection conversation is happening after a house goes under contract instead of before it is listed.

By the time the buyer's inspector shows up, the seller has already emotionally sold the house, the buyer has already emotionally bought it, and every finding on the report becomes a fight. Most of those findings are fixable. The deal dies because nobody set the expectation up front.

What is the Smooth Move program?

Smooth Move is KCN's proven pre-listing process for sellers. The core requirement is a home inspection before the property goes on the market, so seller and agent see what a buyer's inspector is going to see, and price and repairs are decided with real information instead of guesses.

The program also spells out, in writing, why skipping this step is a bad idea. The last paragraph tells the seller, in polite language, that if they refuse the upfront inspection and the deal blows up later on findings they could have addressed, that outcome is on them.

How does an upfront inspection actually save the deal?

An upfront inspection gives the seller three options before a single showing: fix the issue, price around it, or disclose it. All three are cleaner than negotiating it under a contract with a deadline and an anxious buyer on the other side.

The upfront report is not going to catch everything the buyer's inspector catches. It does catch the big items, which is where most fallout starts. A small punch list at contract stage is a conversation. A big surprise list is a cancellation.

What if the seller cannot afford the repairs?

KCN works with vendors who can complete needed repairs and wait until closing for payment. That takes the biggest seller objection off the table. The seller does not have to write a check up front, and the buyer does not have to fund the fix.

That single arrangement turns "we cannot afford to fix that" into "we already handled it." Deals close instead of falling apart, and the seller nets what they were told they would net.

What are the two biggest stressors for sellers?

Sellers who have been through the process before consistently name the same two stressors as the worst part of selling a home. Both of them show up during the inspection window. Smooth Move exists specifically to remove both.

The pitch to the seller is straightforward: "We have a proven plan that addresses the two things you told me you dread. Are you willing to do the one thing that makes the plan work?" Almost every seller says yes to that.

How do I introduce this on a listing appointment?

Ask two questions. First, "Have you sold a home before?" Second, "What was the worst part?" They will name the inspection window unprompted. Then you say, "We have a program built to eliminate that. Here is how it works."

That is the whole opening. You are not selling harder. You are naming a problem they already know they have and offering a specific, structured way to avoid it.

Frequently Asked Questions

How much does the upfront inspection cost the seller?

A standard home inspection runs around $400 in most markets. That is a small number compared to the cost of a cancelled contract and a home going back on the market as "stale."

What if the upfront inspection misses something the buyer's inspector catches?

That happens. The upfront inspector catches the major items, which is where most fallout originates. A short punch list at contract time is normal and negotiable. Big surprises are what kill deals.

Do buyers still order their own inspection?

Yes. Buyers should always order their own. Upfront inspection does not replace the buyer's inspection, it prevents the shock that turns the buyer's inspection into a cancellation.

Which vendors will wait until closing for payment?

KCN has vendor relationships in each market where the team operates. Details are shared with agents on the team as part of Smooth Move onboarding.

Where do I learn how to actually run this with my next listing?

Book a Growth Strategy Session and we will walk through how Smooth Move fits into your existing listing process. It is a one-on-one conversation, not a webinar.

The market is not the reason your deals are falling out. The conversation you are not having up front is. If you want the exact script and process KCN uses to keep 70% fallout from touching your pipeline, book a Growth Strategy Session and we will walk you through it.

Frequently asked
Questions readers ask
Why are so many deals falling out on inspection right now?+
Buyers feel stretched on price and rate, so any surprise at inspection becomes an emotional off-ramp. The report isn't the problem - the lack of a pre-inspection expectations conversation is.
What is a pre-inspection conversation?+
A short, deliberate talk with both sides before the inspection: what a normal report looks like, what's cosmetic vs. structural, what's reasonable to ask for, and what isn't. It reframes surprise as information.
How do I add this without scaring my clients?+
Position it as protecting their time and money. Buyers don't want to lose a house they love over a $600 item; sellers don't want to relist. Framing it as 'let's decide now how we'll respond' lowers the temperature.
Where does KCN teach this?+
Every Monthly Market Round Table breaks down the current fallout data and the exact scripts top KCN agents use to keep deals together. Request an invite to attend.