Published October 3, 2022
3 Things To Consider Before Backing Out Of A Contract
In August 15.2% of all home purchases across the country fell through. There are a variety of reasons why a home purchase could fall through, including everything from an unfavorable property inspection to a change in your financial situation. Here are 3 important aspects to consider before you cancel your contract:
Your escrow deposit may be at stake. Be sure to speak with your agent to make sure that your deposit is protected by the contingencies of your contract. A contract that is favorable to the buyer will include contingencies for property inspection and securing financing, but these contingencies are sometimes waved to make the offer more appealing to the seller.
Is the seller open to negotiating? Just because you have the option to cancel the contract does not mean that it is the easiest way forward. Many times sellers are happy to be under contract and would rather compromise than have their home go back on the market. When presented with evidence and justifications, the seller may be willing to save the deal.
Do you have another home in mind? In todays competitive real estate market it may take weeks or months to have another offer accepted, so it is a good idea to have a backup plan in mind before backing out of a contract. If there are not any comparable homes on the market, you may want to consider negotiating with the seller before canceling.
If you have any questions about the home buying process or want to know more about what putting together an offer on a home looks like, give our team a call today!
For more information on contract cancellation, take a look at this article from CNBC:
