What If I Decide to Back Out of Buying a House?

So you are feeling a bit of buyer's remorse and you want to cancel the contract.  The answer is maybe, but there are a couple things to consider.

1. Do you have the right to get out?

2. If not, what are the consequences?

Well, when it comes to consequences, there are two potential outcomes.

1. You will forfeit your earnest money deposit.  This is normally 1% of the sales price that is held as good faith in purchasing.  And if you are having these thoughts, this is the reason sellers won’t normally take a contract without one.

2. Depending on the financial size of the contract, length of time off market, etc, the seller could also sue, you, the buyer for specific performance, especially if you truly have the means of completing the purchase.

To make sure you don’t find yourself in this circumstance, 

1. Be firm in your wants and needs list while searching for your next home.  Most buyers will not find themselves second guessing their home choice if they stuck to their must haves and can nots.

2. Build in contingencies in the contract that allow you flexibility to walk if needed.  Things like financing, appraisal, inspection, and even the HOA.

The main thing to keep yourself out of trouble is to hire the right agent to keep you out of harm's way.  When we sit down with our buyers we make sure to truly understand what they are truly looking for in a home.  Anyone can open a door, even a monkey. But a great agent can help direct you to the perfect home.