The Myrtle Beach real estate market tells a powerful story: price alone doesn't win homes anymore. In 2025, a troubling trend emerged that contradicts decades of housing conventional wisdom. Buyers who offer substantially more than the asking price are still losing properties to other offers. According to the 2025 NAR Profile of Home Buyers and Sellers, along with recent Zillow research, the reasons go far deeper than money. This shift fundamentally changes how buyers should approach home offers in the Grand Strand market and beyond—and it's creating winners and losers based on contingencies, not cash.
The Contingency Trap: Why Higher Offers Still Fail
A buyer's offer is only as strong as the conditions attached to it. This is where many well-funded buyers make their critical mistake.
In 2025, financing issues became the single biggest reason offers collapse. According to Zillow's latest seller survey, 39% of fallen offers cited problems with money, mortgage, or financing as the cause—the leading reason by far. But here's the problem: even buyers with significant resources can fail if they can't close cleanly. A debt-to-income ratio that's too high, a recent late payment, or even a minor credit issue can sink an otherwise attractive offer.
Appraisal gaps represent another silent killer. When a home appraises for less than the purchase price, the lender will only finance the lower appraised value. If a buyer offered $400,000 on a Myrtle Beach home but it appraises at $385,000, the buyer must cover that $15,000 gap from their own funds or walk away. According to Zillow research, 28% of failed offers cited low appraisals as a contributing factor. Sellers increasingly see these appraisal contingencies as red flags—even when the initial offer is aggressive.
Buyers who waive their appraisal contingency might initially seem like stronger competitors. Yet 61% of buyers still include appraisal contingencies in their final accepted offer. This reveals a critical insight: sellers are choosing offers with contingencies over offers without them, suggesting other factors matter more than the contingency itself.
The Inspection Contingency Paradox
Home inspections create another tension point. In 2025, 54% of offers waived the inspection contingency—a bold move meant to strengthen the proposal. Yet when sellers accepted offers, 58% ultimately agreed to inspection contingencies. This paradox exposes a hard truth: waiving an inspection contingency doesn't guarantee victory.
What happens is predictable: the buyer without an inspection waives the protection, but then fails on financing or appraisal. Meanwhile, the buyer with an inspection contingency closes cleanly. Sellers are learning that a committed buyer with realistic terms beats an aggressive buyer with a house of cards.
In the Horry County market, where homes stay on the market for approximately 97.6 days on average (compared to 48.5 days nationally), sellers have time to evaluate multiple offers. That means they're increasingly choosing based on certainty, not just dollar amounts.
Insurance: The Silent Deal-Killer Nobody Talks About
One of 2025's most shocking discoveries: 29% of sellers reported offers fell through because buyers couldn't secure homeowner's insurance. This emerged as a new dominant reason for failed transactions.
In coastal areas like Myrtle Beach and the surrounding Grand Strand communities, insurance has become a hidden financing barrier. Older homes, properties near water, or homes with certain roof types may be rejected by standard insurers. A buyer can have the money, strong credit, and clean financing—and still lose the property because they can't get insurance approval from their lender.
This trend didn't exist five years ago with the same intensity. It represents an emerging class of deal-breaker that no amount of offer money can overcome.
The Real Reason Higher Offers Lose: Proof of Funds Uncertainty
Cash offers should be unbeatable, right? Not anymore. According to recent market analysis, while cash buyers maintain a competitive advantage, 52% of sellers who receive cash offers ultimately choose financed offers instead. Why? Because the conditions matter more than the medium.
When a financed buyer offers strong terms—reasonable contingencies, realistic timelines, proof of financing pre-approval, and higher earnest money—they often win over a cash buyer who seems less committed. The buyer with $50,000 in earnest money and a solid financing pre-qualification letter is more credible than the buyer claiming to have cash but not providing bank statements.
In Myrtle Beach's 2025 market, where months of supply remained elevated, sellers could afford to be selective. The narrative shifted from "take the highest offer" to "take the safest offer."
Appraisal Gaps and the Buyer's Financial Reality Check
An appraisal gap occurs when a buyer's offer exceeds what the home is worth according to the lender's appraiser. The buyer must then decide: pay the difference out-of-pocket, renegotiate, or walk away.
According to recent financing data, 45% of mortgage rejections cited a high debt-to-income ratio as the reason. This means a buyer who looks strong on paper might fail underwriting when the full picture emerges. A higher offer that requires a buyer to stretch their finances beyond debt-to-income limits will fail—even if they're offering $50,000 over asking price.
This is where the distinction between raw purchasing power and actual borrowing capacity becomes critical. Many buyers in 2026 have impressive savings but limited income relative to the property price. They lose to buyers with more modest offers but stronger income-to-debt ratios.
What Winners Do Differently in 2026
Buyers winning multiple-offer situations in the Grand Strand aren't always offering the most money. Instead, they're offering:
Pre-approval letters verified within 7 days of the offer date (lenders must confirm nothing has changed)
Higher earnest money deposits (showing skin in the game reduces seller risk)
Inspection contingencies that signal confidence, not doubt (requesting a 10-day inspection period shows the buyer is serious, not fishing)
Appraisal gap protection up to a specific amount (e.g., "I'll cover appraisal gaps up to $10,000") rather than contingent on exact appraisal value
Proof of insurance pre-qualification in coastal markets (not waiting until after appraisal to discover insurance is unavailable)
Closing timeline that's realistic (30 days for standard transactions, not 21, which invites appraisal or underwriting delays)
The data is clear: certainty beats aggression. Carolina Crafted Homes sees this firsthand in our Myrtle Beach market. Buyers who lose despite strong offers usually made one critical error—they prioritized the offer price over offer structure.
FAQs
Q: Can a buyer back out if the appraisal comes in low?
A: If the buyer has an appraisal contingency (most do), they can renegotiate or walk away. Without the contingency, they must cover the gap or default. According to recent data, 28% of failed offers cited low appraisals, so this is a common problem.
Q: Is it better to offer all-cash or get a mortgage?
A: Neither is inherently better. Cash offers are faster, but 52% of sellers who receive cash offers choose financed offers instead because the financed buyer's terms were stronger. The strongest offer combines adequate earnest money, realistic terms, and proof of financing approval.
Q: What can I do to make my offer stronger besides offering more money?
A: Provide recent bank statements showing liquid funds for your down payment. Get a mortgage pre-approval from the lender (not just pre-qualification). Offer a higher earnest money deposit. Include an inspection contingency (it shows confidence). Have proof of homeowner's insurance availability. Reduce your closing timeline only if realistic.
Q: Why do so many offers fail in today's market?
A: According to Zillow and NAR data, the top reasons are: financing issues (39%), appraisal gaps (28%), inspection discoveries (21%), and inability to secure homeowner's insurance (29%). None of these are solved by offering more money—they require structural soundness in the offer.
Q: How long does underwriting take, and can it cause an offer to fail?
A: Underwriting typically takes 3-5 business days after appraisal. Common rejection reasons include debt-to-income ratio (45% of rejections), low credit score (24%), and insufficient reserves (13%). These are discovered during underwriting, not during the offer phase, making pre-approval more important than offer price.
Q: What is an appraisal contingency, and should I waive it?
A: An appraisal contingency allows you to renegotiate or walk if the appraisal comes in low. Waiving it seems strong but invites risk—if the appraisal is $20,000 low, you must pay it. In 2025, 58% of accepted offers still included appraisal contingencies, suggesting sellers trust buyers with realistic contingencies.
