If you’ve spent any time watching the MLS or Zillow alerts, you’ve probably seen a property go from Pending back to Active, accompanied by the phrase:
“Back on market, at no fault of the seller.”
It’s a polite way for listing agents to say, “The deal fell apart—but don’t blame the seller.”
But what’s really going on behind the scenes?
The Hidden Risks of Traditional Deals
In most traditional real estate transactions, a property goes under contract subject to contingencies—home inspection, financing, and, notably, appraisal. When a buyer’s lender sends out an appraiser and that appraisal comes in low, it creates a mess. Suddenly, the buyer may not qualify for the full loan amount, and they want the seller to drop the price. If they can’t agree, the contract falls apart. And when it does? That phrase pops up: “At no fault of the seller.”
But here’s the kicker: for certain types of loans (particularly FHA and VA), once an appraisal is completed, it sticks to the address—for up to a year. That means even if the original buyer walks away, the low appraisal can continue haunting future offers, especially if the next buyer is using the same loan type.
So now the seller has a public black eye. Their listing history shows a failed deal. The pool of interested buyers might shrink. And worst of all, that sticky appraisal can limit the next buyer’s financing, even if the home is worth more to someone else.
The Auction Advantage
This is where real estate auctions shine.
When sellers choose the auction method, they sidestep the traditional contract-limbo altogether. At Double A Auction & Realty, we sell as-is, with no contingencies for financing or appraisal. Buyers are welcome to do their homework—inspect, visit, run comps—but they do it before they bid.
And because we don’t rely on lender-required appraisals, we never get tied down by low appraisals that can stick to the property. The high bidder sets the market price in real time, based on competition—not on an appraiser’s opinion from behind a desk.
Bottom Line
If your deal falls through in the traditional system, your agent will try to soften the blow with “at no fault of the seller.” But soft language won’t fix a stuck appraisal or a spooked market.
With the auction method, we eliminate those pitfalls. No financing fallout. No appraisal sticking. No backpedaling.
Just a clear, competitive, and defined path to closing.
Can’t make it to our auction?
Download our mobile bidding app to your smartphone, and bid from wherever you need to be. Works for both Apple and Android.
