Green Haven Capital's Kevin Oto on why pressure won't save a deal with a hesitant buyer
Buyers who surmount every financial hurdle present some of my hardest conversations, these days. They have the income, the assets, the credit and a home payment they can afford, and they still hesitate. Rates, home prices, the economy, or simple fear of making the wrong call can stall a deal that comes together perfectly on paper.
That hesitation isn’t a feature of my practice. Across the US, nearly one-in-six (14 percent) of homes that went under contract in July saw the deal collapse, the largest share since November 2023 after seasonal adjustment, according to a Redfin analysis of multiple listing service (MLS) pending-sales data. Inspections, appraisals and financing problems account for plenty of those cancellations. But when buyers have more homes to choose from, a qualified buyer who isn't sure becomes much easier to lose.
My approach isn't to push them. I want to understand what's actually driving the hesitation, show the buyer their options, and solve the problems we can.
Cold feet usually hide one specific concern
When a buyer starts second-guessing, my first question is one that’s simple: what changed? Is the payment higher than they expected? Are they worried about spending too much of their savings? Did the inspection turn up something? Do they think they're overpaying? Did a family member tell them to wait? Are they holding out for lower rates?
Each of those concerns calls for a different conversation, and lumping them together as “cold feet” misses the point. A payment surprise and an inspection surprise can look identical from the brokers perspective, but require completely different fixes.
Sometimes the fix means negotiating a seller credit, changing the loan structure, lowering the price range, keeping more cash in reserve after closing, or simply walking through the numbers again. Other times, the honest answer can be that this isn't the right house or the right time.
Buyers need options, not rate forecasts
A lot of buyer anxiety comes from trying to predict the future. Buyers want to know where mortgage rates will be next year, whether home prices will fall and whether waiting six months would leave them better off. Nobody can answer those questions with certainty, and I won't pretend I can. As I've argued before, very few people can consistently time interest rates.
What I can do is lay out their options like those given above: We might structure the loan differently; We might use a seller credit to reduce closing costs or buy down the rate; We might lower the purchase price and keep more money in reserve; Or we might decide together to wait.
Buyers become far more confident once they realize nobody is locking them into a single path. Confidence doesn't come from predicting the future. It comes from understanding your options and knowing you have a plan.
"Confidence doesn't come from predicting the future. It comes from understanding your options and knowing you have a plan."
Comfort stops cold feet before they start
Much of the hesitation I see comes from a gap between what a borrower qualifies for and what they actually feel comfortable paying. A buyer may technically qualify for a payment that still doesn't fit their lifestyle or financial goals. I'd rather help someone buy at a payment that still lets them save, travel, invest and absorb unexpected expenses than stretch them to the maximum simply because underwriting allows it.
When I have that conversation at the very start, I can head off a lot of anxiety before it ever turns into cold feet. It's the same reason I push for the deeper upfront work that brings clarity to an overloaded mortgage market.
Telling buyers not to buy earns their trust
Our job isn’t to save every transaction – It is to educate clients, identify the real concern and find solutions when they exist. Sometimes that leads a buyer to move forward; Sometimes it leads them to wait. Either way, they should have full wherewithal of why they made that decision.
And that honesty pays off over time. When clients know you'll tell them not to buy when the numbers don't line up, they're much more likely to take your word when the numbers do. The goal isn't to pressure anyone into a home, but instead to give everyone enough information, options and perspective to make the decision with confidence. That's the standard I hold every buyer conversation to, regardless of their position.
