It depends on the pending status of the house.
If it is a PI, which means pending inspection, there is a 60% chance that the reason of deal fail is the property. The other 40% chance is that the buyer just decided not to buy it and terminated it with the inspection contingency. However, I suspect this is the case in your favorite house, for a typical inspection period is no longer than 10 days.
If it is a PS, which means pending short sale, the deal breaker could be the bank. And I believe that is the case here. Short sale offers can wait forever for the banks' responses. 2 to 8 month I have heard of. But the consequence of a long waiting period is the market condition change. The Seattle market is hot. Comparing to 8 months ago, the price of fair market value probably could have jumped!! The recent fair market value could be almost double!! of the listing price 8 months ago!!! As a result, the bank counters the short sale offer with a very high and seemingly unreasonable price. The impatient buyer is thus annoyed by the bank and the deal fails apart.
If you are interested in the house, you should be prepared of the maximum price. Know what is your limit and what is the bank's price. To do that, you need to view the house yourself and probably have a pre-inspection to solve your concern of material defects of the property. I am experienced in representing buyers in short sale transactions. If you need help, I will be glad to share with you my strategies to close this deal for you.
Century 21 North Homes Realty, Inc.