How To Make Sure Your Real Estate Transaction Closes. Lynn Sherman with eXp Realty Outer Banks Joins Me | #41

More real estate deals are falling apart today than at any time in recent memory, and anyone watching the 2025 market can feel the shift. With inventory inching up, days on market stretching longer, and buyers becoming more selective, the Outer Banks are seeing a noticeable rise in contracts that don’t make it to the closing table. It’s a change that affects every seller, every buyer, and every agent working here right now.

My guest today is Lynn Sherman with eXp Realty Outer Banks, my longtime business partner and a seasoned agent who’s worked through multiple market cycles along our coast. Lynn has nearly a decade of selling experience and grew up around the real estate industry long before becoming an agent herself. She brings a steady, experienced perspective to the ups and downs of this market, and together we’ve helped hundreds of buyers and sellers navigate transactions in every type of environment.

In this episode, we talk about why more deals are falling through, how buyer expectations have changed, and why due diligence and inspections are becoming pressure points instead of simple checkpoints. We also share real examples from recent transactions, explain what both sides can do to keep a contract together, and dig into the communication challenges that newer agents are facing as the market shifts back toward normal.

Whether you’re preparing to list, considering making an offer, or just trying to understand what’s happening beneath the headlines, this conversation gives you a clear, honest look at what it takes to get a deal all the way to closing in 2025.

In This Episode:

• [01:00] Lynn and I talk about the biggest shift we’re seeing in 2025: more contracts falling through after going under contract.
• [02:11] We walk through three recent deals that nearly fell apart and what those situations revealed.
• [03:39] We discuss Redfin’s report showing more than 15% of contracts are terminating nationwide.
• [04:22] We compare today’s fall-through rate to the unusually steady stretch from 2022 through 2024.
• [05:01] We talk about interest rates, affordability, and how longer days on market are affecting buyer behavior.
• [06:01] We break down North Carolina’s due diligence system and how it adds pressure to negotiations.
• [07:15] Lynn explains why some buyers feel they finally have leverage after waiting through the hot market.
• [08:17] We talk about the importance of communication and why experience matters in a shifting market.
• [09:12] We explain how incorrect pricing can cause sellers to chase the market down.
• [10:06] I share how some agents use flawed market data to justify lower offers, frustrating sellers.
• [11:04] We show how today’s fall-through rate actually reflects a more normal, balanced market.
• [12:10] We walk through the “as-is” sale where the buyer still tried to renegotiate heavily.
• [13:20] We talk about the $70K+ concession request and why we chose not to engage with it.
• [14:46] We explain how pre-listing inspections can help prevent surprises once a home is under contract.
• [15:45] Lynn shares how inspection findings must be disclosed once the seller knows them.
• [16:11] We break down the difference between due diligence fees and earnest money.
• [17:06] I explain how old contract language created gray areas around what counted as “operating as intended.”
• [18:00] We talk about the days when buyers put multiple homes under contract with zero financial risk.
• [19:06] We recall how due diligence fees skyrocketed during the ultra-competitive COVID market.
• [20:06] We discuss why the due diligence system can feel unfair to buyers when hidden issues surface.
• [21:23] Lynn explains how appropriate due diligence fees vary depending on a home’s age and condition.
• [22:31] We stress the importance of discussing expectations around due diligence early with both sides.
• [23:13] Lynn shares why sellers need reminders throughout the process, not just at the listing appointment.
• [24:14] We talk about newer agents failing to prepare buyers for what “as-is” truly means.
• [25:28] I explain why visible issues should already be reflected in the offer price.
• [26:04] We discuss how due diligence should focus on unknown issues, not visible or obvious ones.
• [27:09] We share why buyers and sellers often get stuck on round numbers instead of the big picture.
• [28:17] Lynn highlights why consistent communication is essential to keeping deals together.
• [29:03] I explain how Lynn and I prepare before delivering tough conversations to clients.
• [30:03] We talk about navigating emotions—not just negotiations—during a real estate transaction.
• [31:06] We close by encouraging clients to stay open, ask questions, and communicate throughout the process.

Resources: 

• Beach Road Banter - Instagram
• The Jones Group
• eXp Realty in Outer Banks