If you placed an offer on a home but are now second guessing your decision, rest assured, there are ways to back out of the offer if you’ve changed your mind. While each Real Estate purchase is unique, generally you can choose to stop the purchase process all the way up until you close escrow and receive the keys. While in some cases backing out of the deal may be simple, in more severe cases you may risk some penalties including loss of earnest money or even being sued by the seller.
Related: Can You Back Out of a Sale?
The main thing that you may lose when changing your mind after your offer has been accepted is the loss of your Earnest Money. Earnest money is a fee that you as the buyer pay to the seller as an act of good faith and to show you are serious about the purchase.
In most cases your earnest money will be between 1-3% of the sale price, however in some cases the amount may be lower if agreed upon between both parties. Some instances will allow you to back out of the sale, regardless of if your offer has been accepted and not lose your earnest money, this is most common if the accepted offer contains contingencies that were not met or addressed by the seller.
In extreme cases, and if in total breach of contract, the seller may choose to sue you for not fulfilling your part of the purchase agreement. Luckily, most purchase agreements have contingencies to protect both parties from an escalation of this level. Ensuring that you review your purchase agreements and contracts in depth is vital in your purchase, regardless of if you feel 100% confident in the purchase or not as it could protect you if something doesn’t go as planned and you have to back out of the deal prior to closing.
Related: Can I Qualify for a Home Loan?
Once both parties, the buyer and the seller, have signed the sale and purchase contracts, you at that point are unable to change your mind and back out of the sale. In some cases, should you try to back out after the deal has been “closed” you could end up unwillingly going into pre-foreclosure if you refuse to pay the mortgage on the property as it is legally now your responsibility. Your agent will be able to assist you through the buying process and help educate you on your options should you decide to pull out of the sale prior to closing.
If you’re currently searching for a new home, are ready to sell your home and are in need of a qualified seller’s agent, or if you have any questions regarding Southwest Washington Real Estate, please feel free to contact our office at any time.
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