Home deals are collapsing at twice the normal rate due to appraisal shortfalls and lenders pulling back. Buyers are more rate sensitive and balk when taxes, insurance, or HOA special assessments appear. Inspection demands and shaky preapproval letters are causing deal fallout. Sellers with little equity struggle to concede as buyer leverage returns to the market.
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insights INSIGHT
Appraisals Are Driving Many Deal Failures
Appraisals often lag asking prices because they strictly follow recorded sales comps.
That gap forces buyers to bring cash or causes sellers to lower prices and deals to collapse.
insights INSIGHT
Rate And Non-Mortgage Costs Change Affordability
Buyers are far more rate-sensitive now than sellers realize, so small rate moves can change affordability.
Rising non-mortgage costs (insurance, taxes, CapEx) further squeeze buyers even when rates dip.
volunteer_activism ADVICE
Use Credits To Avoid Endless Repair Negotiations
Offer a credit rather than performing endless small repairs after inspection.
Credits stop escalation and let buyers handle fixes without repeated negotiation headaches.
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Home deals are collapsing at twice the normal rate, and most sellers don’t understand why. Ken and Danille McElroy break down the 7 hidden forces quietly shifting power back to buyers in 2026, from appraisal gaps to HOA shocks and rate sensitivity.
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ABOUT KEN: Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, and The ABC’s of Property Management. With over two decades of experience in real estate investing, Ken McElroy is passionate about sharing the good life by helping real estate investors grow and prosper. This podcast is a place for Ken to discuss numerous topics connected to real estate investing, including finance, budgeting, the entrepreneur mindset, and creating passive income. Ken offers a wealth of personal experiences, practical advice, success stories, and even some informative setbacks, all presented here to educate and inspire. Whether you’re a new or seasoned investor, the information and resources on this channel will set you on a path where you and your investments can thrive.
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