Real Estate Misfires, Mishaps, and Costly Mistakes

A real estate transaction can look perfect on paper—right up until the moment it isn’t.

In this episode, we share real-world stories of deals that nearly fell apart (or did), including one unforgettable situation where a buyer moved into a $1.7 million home only to discover that half the house had no hot water.

One phone call to a plumber led to an unexpected revelation: the seller was already known for the issue.

Suddenly, the conversation wasn't about plumbing anymore.

It was about disclosure.

And few things can damage trust faster in a real estate transaction than discovering a problem that should have been disclosed from the beginning.

The Growing Number of Failed Contracts

Real estate contracts don't always make it to the closing table.

As buyers conduct inspections, review reports, and investigate properties more thoroughly, some deals begin to unravel.

A canceled contract can be costly for everyone involved.

For sellers, it can mean:

• Lost time on the market
• Reduced negotiating leverage
• Additional carrying costs
• Questions from future buyers about why the deal failed

For buyers, it can mean weeks of uncertainty, unexpected expenses, and starting the search process all over again.

The Importance of Disclosure

One of the biggest topics we cover is Utah's Seller Property Condition Disclosure.

Many sellers wonder:

"How much am I required to disclose?"

The safest answer is often:

When in doubt, disclose.

The purpose of disclosure isn't to scare buyers away.

It's to create trust, avoid surprises, and reduce the likelihood of future disputes.

What Is a Material Defect?

A material defect is generally something that could affect:

• A buyer's decision to purchase
• The property's value
• The property's safety or livability

Problems involving:

• Water intrusion
• Structural concerns
• Major mechanical systems
• Persistent plumbing or electrical issues

...are typically examples buyers expect to know about before closing.

What Home Inspections Can—and Can't—Do

Many buyers assume a home inspection will uncover every possible issue.

It won't.

Home inspections are valuable, but they're limited to what can reasonably be observed during the inspection process.

Inspectors can't:

• See through walls
• Predict future failures
• Discover every hidden defect

That's why inspections and disclosures work best together.

Why FSBO Transactions Can Create Risk

For Sale By Owner (FSBO) transactions can be successful.

However, they sometimes carry additional risk because:

• Disclosures may be incomplete
• Inspection recommendations may be overlooked
• Paperwork requirements can be misunderstood
• Buyers and sellers may not fully understand their obligations

Most problems aren't caused by bad intentions.

They're caused by missing information.

Common Deal Killers During Due Diligence

Some of the issues most likely to derail a transaction include:

• Roof problems
• Foundation concerns
• Water damage
• Drainage issues
• Soil and geotechnical concerns
• Major HVAC repairs
• Electrical defects
• Plumbing problems

Many of these issues can be addressed before a property ever hits the market.

The Best Advice for Sellers

If there's one takeaway from this episode, it's this:

Consider getting a pre-listing inspection.

A pre-listing inspection can:

• Identify issues before buyers do
• Allow repairs to happen on your timeline
• Reduce negotiation surprises
• Increase buyer confidence
• Help prevent deals from falling apart during due diligence

Even better, keep receipts and documentation for any repairs completed.

Buyers notice when a seller is proactive.

And confidence often translates directly into stronger offers.

Episode Timestamps

• 00:00:00 — Welcome and Local Real Estate Stories
• 00:07:05 — Contract Cancellations and Why Deals Fail
• 00:11:40 — Utah Disclosures and the "D" Word
• 00:14:45 — Home Inspections and FSBO Risk
• 00:18:30 — Due Diligence and Soils Report Fallout
• 00:20:40 — Pre-Listing Inspections and Top Deal Killers
• 00:23:14 — How to Reach Us and Wrap Up

Have questions about buying, selling, or investing in Southern Utah? Reach out anytime.

P: 435-291-5443
E: sales@gostgeorge.com

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