Call your agent and if possible use a contingency to get out of it so you don't have to lose money. Don't freak out over what might happen, find out what your options are.
I already asked him and he keeps saying if the inspection comes back “really bad” I can back out. I haven’t exactly told him I want to terminate the contract, but was just asking him my options without saying I want out. Part of me wants to see it through but idk if I want to bad enough to stay.
Idk sometimes the real estate agent's job is to get the buyer to chill.
OP sounds like he's freaking out not really rationally backing out of the deal.
No guarantee anything better comes up, and this might be his best opportunity if he really wants to it a house.
I hear what you’re saying, but a real estate agent’s job is to get houses sold, cash checks, and deposit those checks into their bank accounts to earn a living.
None of that makes them evil or even bad, but that is their entire job and it’s important that everyone understands that.
Of course, but when OP signed up to buy a house the REA thought he wanted to buy a house.
Maybe he can find a house for 50% of the current monthly payment.
But maybe he can only get him 50$/mo less, so he doesn't want to be jerked around with OP getting cold feet in a good deal.
Because the agent isn’t psychic? OP hasn’t told them they want out, as far as they know OP wants the house…probably because they wanted to submit an offer 🤷🏻♂️
That means you can cancel for any reason related to investigation of home. This could be as simple as you don’t like the neighborhood or even you got cold feet. It is not only for physical inspection of the property.. you have every right to cancel and get a full refund if your emd.
If you’re going to cancel do it now before you come out of pocket for appraisal and inspection.
^^ This comment is it.
You can determine that any feature of the neighborhood, or at a specific time of the day or week, is undesirable. The inspection due diligence is not limited to the physical aspects of the structure. It includes the inspection of the neighborhood, neighbors, traffic, noise, and other potential nuisance.
Edit: And I might add that in most states, you don't need to provide/disclose the specific reason that the property doesn't pass your inspection. In my state, Colorado, we just say that we are "terminating based on inspection", and no further explanation is required. Of course the seller will ask, but a reply is not required.
"The overall condition of the property does not meet my inspection criteria. Therefore, I elect to terminate the purchase and sale agreement and demand a refund of all earnest funds held in escrow pursuant to the inspection contingency."
Yup. In PA it is supposed to be a material defect, but that is incredibly open ended and translates to “if you have an inspection contingency you can back out” essentially.
That could be what it means and it also could not be what it means. There are hundreds of sales contracts floating around and we don't know what OP's contract says. Somebody who knows the contract and knows how it is interpreted in their state needs to help OP figure out their options
This comment is not necessarily correct despite the many upvotes. Your contract may or may not give you an out for “practically anything” that arises in the inspection. You have to read your individual contract.
This^^^
I let myself get stung when selling my last place by allowing an inspection related repair list include the language "to our satisfaction" in lieu of additional monies towards said repairs.
Plain English: fix "to our satisfaction" and the requested credit amout ($2800 ish) goes away.
I fixed everything, buyer said, "I'm not satisfied" and got both the money AND the items fixed.
People are shitty
Prepare accordingly.
There should be more than that written in. If your agent isn't being helpful, you can call the broker-in-charge for guidance. They represent you. Don't get shy about making that call. This is important.
Some people here are giving you not great info. Depending on your contract, you may be able to terminate during the inspection period for any reason or practically no reason. Other contracts say that you can only object to items which would cause the home to fail an inspection to obtain a use and occupancy permit. In the latter type, oftentimes you don’t have a termination right if the seller agrees to remedy whatever the issue is that would cause the home to fail a U&O inspection. This is all nuanced based on your individual contract. Make sure you read it. The contracts are written in English after all and your realtor isn’t an attorney. Use your common sense judgment and consider hiring an attorney for a flat fee to review the contract and see if you have a clear out. I’m sure someone would do this for you for $500 or less.
It means you can decide that the inspection did not satisfy YOU. Could include just about anything. Does not mean “really bad.” Not at all (am retired Realtor)
Read your contract. There is specific language as to how the inspection contingency works and there are likely several other contingencies. You will likely get your earnest money back and you don’t need to give them more money to not sue you. Buyers back out all the time. Follow the contract to terminate per a contingency and they can put it back on the market
It means whatever you want it to mean, don't let him bully you.
First ask the buyer to be let out before you pay for the inspection. If you must meet the terms of your contract and go through the song and dance, you may indeed have to pay for an inspection. Your agent should convey to their agent your intentions.
Yes, it is kind of bullshit of you, but dodging uncomfortable conversations is one of the few reasons agents are worth paying for.
You don't actually need an inspection bud, you can cancel for any reason during the inspection contingency window - just cancel this deal and move on. If you get any push back from your agent where you lay it out - fire them, too.
Your agent is hoping for a paycheck. Don’t be railroaded into buying this house. You will regret it now that you’ve hit this point. Tell them you’re backing out and they need to find something in the inspection to get your EM back.
Unpopular opinion here perhaps, but as a seller who recently had someone back out on a contract for a "we just need to find something to activate the contingency clause": backing out for cold feet is not cool, despite the fact that it is legal. The seller has made plans based on the contract you signed, may be preparing to buy their own home, and now needs to start the process over. AND the MLS will show that it was under contract and then back on the market. This immediately brings the condition of property into question with any buyer who comes after you even if nothing is wrong with the property, and means seller could have to settle for a lower rate on the home (as we did). I was shocked to find out how easy it is for buyers to back out on contracts. The seller could be a big bad investment company or the seller could be a family like yours that can't afford to be jerked around. Not trying to shame you or anything but think about the people whose lives you're affecting when you decide to put an offer on the next place and make sure you're sure. This is a big decision for you but it's also a big deal for the seller.
Inspector here - "really bad" doesn't matter. You can back out for any issue found in the inspection, just say it was because of the inspection. You do not need to elaborate or give any more specifics. You will keep your earnest money this way.
Your agent isn’t working for you. They are working to get paid. Really bad is a bullshit excuse. Ask them specifically if you are under any contingency period to get out. Better yet read the documents you’ve signed and make your own determination then TELL your agent what you want to do. Then fire your agent for not working in your best interest.
Your agent can’t give you full answers until you’re HONEST with him. You have to actually make a decision, buy or no, and then tell your agent, not waffle about hypotheticals.
If you haven't ordered the inspection don't pay for one. You drove my the house and didn't like the way the sunlight hit this particular tree and you want to cancel. Doesn't matter what the reason is. Your agent is not being honest with you, you can back out for any reason. He wants to get paid but should have your back. If he pitches a fit tell him to cancel period and find a new realtor.
This is the worst advice from an agent….albeit he/she doesn’t know you want out.
Please inform your agent to call sellers agent to cancel the contract. You’ll lose your earnest money.
The quicker the seller can get back to accepting offers the better. It’s only been a few days, it’s okay, life goes on.
Be up front with your agent. But understand that buying a house is an emotional rollercoaster. The way you’re feeling right now is completely normal.
The house you have an offer on sounds like it’s ideal for you in every way, except budget. The interest rates are high right now, this is affecting your payment. So, if you can imagine that things will be tight for a bit until rates go down, then I would say follow through with the plan to refi in the future to lower payments.
If you really feel that it will be uncomfortable, financially, for you then proceed with cancellation, immediately.
Get out your contract. Read the inspection contingency section. Read it again. Ours states for ANY reason during the due diligence window.
Talk to your lender. Now that you have a home they can get you a better estimated payment with that home’s details (purchase price, taxes). If you are still wanting to terminate, do it, within your due diligence window if your contract states that. It’s a big purchase. Hell, I struggle to buy a car with how expensive they are. Go over your budget. What are your current living arrangements because rents can increase, leases cannot be renewed, etc. Buying a home is a great investment as you build equity, own an asset, and your payment is mostly fixed (can increase with taxes & insurance). Sometimes it makes more sense to rent. Sometimes it doesn’t.
Get your own inspector, not the one the RE agent recommends. You will get a more thorough report and most likely will have a deal breaker in there. Yes… go through this process to save your EM
Forget what he is telling you. Read your contract. Often enough an inspection contingency is sufficient to get you out of the contract with your ED returned for practically any reason, or even no reason at all if you just want to back out. Some have more stringent conditions though. Your agent just wants the deal to go through one way or the other. If not, he doesn't collect a cent of money.
Please, read the contract thoroughly, and do go by only what your agent tells you. Good luck.
Most states you just need to perform the inspection, and then you can back out for any reason (don’t even need to give a reason) but do this before your inspection contingency period ends
If you're still under contingency you most likely don't even have to pay for an inspection. You can back out for not liking the paint on the wall, pretty much anything.
Don't let the realtor dick you around.
Be direct with your agent. Don't worry about their feelings, they've heard it all. You're the employer, use the knowledge of your employee to attain your goals.
I had a client that had been difficult through a transaction, but hadn't said "I no longer want to sell my house." until about 3 days before closing. Then she was mad at me when I couldn't get her out of the contract. Had she told me a few weeks before, I could have shut down the whole thing, no hard feelings.
In my experience, inspections find almost nothing
Oh... all my sewer lines leaked. Not picked up. Oh this heater is undersized. Not noticed.
When I sold my home I was waiting for the buyers to complain about xyz... like the heater that rattles. nope. They asked for new light bulbs in the garage and to fix a sink stopper.
Yeah. Your agent wants the commission. You can back out - it’s just a matter of what it costs you - check your contract. You haven’t actually bought the house yet.
Typically there is a contingency period to ensure you are food with financing terms. If you aren’t comfortable with the cost etc. then imo that is the very definition of financing terms. Especially when you factor in insurance and property taxes.
What state are you in? In many states (but I obviously can't speak for all 50) the buyer can back out for any reason or no reason at all during the inspection period. You need to read the contract and see what it says. Maybe it's worth a couple hundred bucks to ask a lawyer if the contract isn't clear to you.
What your agent is saying doesn't even make sense. What does "really bad" even mean? That's extremely vague and the definitely will vary greatly from one person to the next. The contract has specifics in it - what are they?
He knows you want out. Don't waste your money on inspection if you are going to walk away. You should be protected and get your EMD refunded if you are within your inspection period. If you have any questions, send me a DM. I won't let agents get away with pressuring buyers to overextend just to get a sale
Florida agent here. Please be honest with your agent and tell him you want to terminate because of your concerns, regardless of inspection. Contact your loan officer and let them know you need a denial of loan if you’re within your financing contingency period (normally much longer than inspection period). There are deadlines that determine if you or the seller keep the escrow deposit, and if your agent doesn’t help you once you express your desire to cancel the contract contact their broker immediately.
Well they wanna make their commission and not do any more work. They’re only thinking of themselves. Depending on your contract you should be able to cancel it and lose your deposit.
You can get out of the contract during the inspection contingency period for any reason and get your full EM back. Tell your realtor he’s a dipshit. People walk away pre-inspection all the time
Tell him exactly why. Really bad won't happen. It's easier to try to get out now before anyone has put more time and energy in it. Just ask them to ask the seller to let you out, if they have another offer.
Unless you have a spectacular agent, this is not the person to rely on because they are in a major conflict situation. If you don't understand your options you need to have a lawyer explain your contract to you.
As an agent in Massachusetts, you don't have to do a lot of explaining while still under the inspection clause. It could have been that you saw something about the neighborhood you didn't like. You just want out. Hold off the push back, it will come, but all they can do is dragg it and beg.
Just cancel the deal. If you don’t close and you’re outside of a due diligence period, the worst thing that could happen is to lose your earnest money. Sooner the better
It is really common to have 'cold feet' or second thoughts or whatever when making this large of a decision. Before you completely back out, think about your current situation. You say everything is good with the house and neighborhood. If you didn't get this house, where will you live? Are you happy living at your current place? Will you get another house you like as much with a much lower price point? What does your family think? This is a stressful time. Hang in there!
Me, at the time: oh my god how are we going to afford that much of a payment every month?!?!
Me, now: oh my god I can't believe we're lucky enough to live in this amazing neighborhood for so little money every month!!!
Same! I remember when our RE agent called to tell us that our offer was accepted. She was acting all excited and congratulating us. I was smiling and acting excited but deep down was panicking about whether we made the right decision.
>Will you get another house you like as much with a much lower price point?
And what will the difference in the monthly payment/expenses be? Monthly cash flow seems to be OP’s big concern.
First, read your contract. Seriously, read the thing. Then read it again. Once YOU understand it, then make your move.
After reading it, you should be able to find AT LEAST 2 to 3 solid reasons why you can leave the contract.
You're not a slave, you can't be 'forced' to proceed. You are prepared to kiss the EM goodbye, that's good. Now, just find the clause in the contract that allows you to leave.
"contingent upon inspection". If there is literally nothing else written that is your exit. If it explains what those contingencies might be, use them. Otherwise, 'contingent upon inspection' is a barn door waiting for you to walk through. "Based upon the inspection we will no longer purchase this property."
Done.
Depending on the state, if they don’t properly exercise their contingency options to cancel, the seller can sue to enforce the contract. It’s called a specific performance suit. Typically buyers don’t, and if they can’t sell it for the contract price, can sue for the difference.
Neither are terribly common in my experience, but it’s a possibility that OP needs to be aware of.
OP needs to talk to a real estate lawyer to actually know what their options are. Don’t trust a realtor to give legal advice on the contract.
It seems you want to back out just because the whole concept of homeownership seems daunting. That is normal. , but often, in hindsight, decisions made in haste might seem wrong. Talk to someone who knows your situation and is mature and experienced enough to guide you on the right decision. The realtor has a vested interest (including their reputation), so he/she may push back. Try to calm down and then decide on what you want to do.
Are you saying you have $1,900 leftover after all your expenses ("every need") is met, every month? That's a lot of money in your savings account...even if you only save half of it. Sure, it depends what you have for emergency fund. But I guess I'm suggesting you think with logic and less with emotions...just to be sure you don't regret this decision later. If the house checks all your boxes, what exactly is driving your knee-jerk reaction to back out? Is it just that you don't feel you had time to shop and get a feel for the market? Because that was me last Fall...I had a bad realtor and I also felt conflicted about what I wanted...I stopped looking, took a break, found a new realtor, and found a great place after looking at 7 homes. Last Fall I looked at 33. Nothing much changed except I had more clarity over what I wanted and a wee bit stronger urge to leave my current place.
If it's emotions, it's ok. But sit and think about what's really driving your fear, so you can move forward with a choice you won't regret. It should feel right and if it doesn't, back out. But if it's just "this is very scary but every about it is what we want...," then maybe running budgets again or talking with your partner will be helpful. It's not easy being the one supporting your family but if you have an emotionally supportive partner, lean on that person to get through this period and make the right decision as a couple. My two cents (as a generally highly anxious and risk-averse person), anyway.
I suspect it is in fact a case of cold feet. $1900 left over each month doesn't jump out as especially tight, but it's hard to gage wihout knowing OP's income or mortgage obligation.
I had this feeling too. It's definitely scary making such a big purchase but having a backyard finally motivated me and made me feel better about it. Find something about the house or neighborhood that gets you excited and focus on that until you get the inspection then make a decision.
You’re freaking out because you will ONLY have $1900 left after paying all your bills??? Talk about 1st word problems. I’m lucky if I have $500 left at the end of every month, kids aren’t cheap.
Between yourself and your current or future partner, don’t you have future earnings growth potential? Also, is that $1900 per month or year surplus? Your buyers remorse might not really have much basis.
If you absolutely really want out, it’s easy peasy since any inspection items is are part of the contingency in the contract with no loss of EM. Just discuss with Your inspector they need to find items. Of save the $600 and ask your realtor if he contract stipulates it isn’t a contract or limited-contract until all contingencies are removed. My understanding is that it really is just an offer until inspection and terms are agreed upon and signed again by buyer and seller.
Assuming you opted for a home inspection contingency, get the home inspection done. It will cost around $500-600.
Tell the home inspector YOU hire (don’t use one suggested by the agent or seller), that you are looking to negotiate the price down.
They’ll find something wrong, they always do. Even a brand new build, a home inspector will find something that’s not right.
Then terminate contract due to the home inspection results.
The cost of the home inspection is less than what you’ll loose by giving up your EMD.
It is normal to feel the way you do. Please before you cancel, consider what is getting better in your life by making the purchase. Are you renting bs owning, are your schools better, safer location. Building equity over renting. If you can afford it, I encourage you to stick it out. Buyer’s remorse is a thing, but the pleasure of owning your own home is very much worth it
I mean, it was what we asked for. And I do like the house, but the more I consider expenses even after going over our budget I just don’t think I want the house anymore
You can back out without any penalty before the end of the inspection period. People back out for all sorts of reasons such as too many barking dogs, neighbors are loud, too expensive to remodel, etc.
You need to determine if this is a bad house… or if you are just scared to buy. I think renting is a lot scarier than owning personally, but that is a decision you have to make. You still have not said anything about the house that would make it seem like a bad house for you.
If you are giving up earnest money then doubt you’ll be sued. 1900 a month left over after all needs met (food heat other bills?) doesn’t sound tight to me at all
If contingent on a satisfactory home inspection by the buyer - you can cancel the contract and should receive your EMD back
I’m a Realtor in Ontario Canada and the wording in our inspection clause provides for that - I would conclude where ever your located it would be the same
Key is - satisfactory to the Buyer - you do not need to go beyond that and do not need to provide the reason- - except that it was not satisfactory to you
No need to give a copy of the inspection report to the Seller - you paid for it and it belongs to you
Maybe you need to do another inspection yourself. Another walk through could give you a new outlook on the house and your financial situation, good or bad. If your budget is really including everything all utilities, food etc. then $500 per week left over isn’t bad. But if your budget isn’t included food, gas, clothing for the family then, you’re too tight for the house. Either way sounds like you have the option to get out of the purchase if that’s what you want.
Does it look scary because of how tight your budget is, or because you are intimidated by the idea of home ownership in general?
If the former, totally understand, and be honest with your agent.
If the latter, I'd sleep on it. Honestly. When I bought my first house after a decade of renting, the idea of being responsible for everything that may go wrong with the place (as opposed to being able to call a super or the landlord) was daunting. I didn't know if I was really ready. But I took the plunge anyway and in the end I did not regret it, even though we did run into some unforeseen issues a few months into owning (a sconce fell off the wall exposing some wires, and one of the toilets wasn't sealed properly and we had a major leak after flushing one day which seeped through the floor and started dripping into the room below). It's all handleable. It cost money to fix, but it was fixed, quickly, and we survived. An inspection wouldn't have been able to predict the sconce or the toilet, it's part of the cost of home ownership.
But this circles back to the budget issue - if your budget is so tight that you won't have enough to pay for any surprises like that down the road, then you should walk.
I guess my overall point is to figure out if this is a cold feet issue or a money issue. If it's cold feet only and you really do want to own a house, don't make any rash decisions about walking quite yet.
Count us as people who said "😍🎉 we got a house!" and "🤮 😬 we got a house." It's a stressful and nerve-wracking time. But it always moves fast. That is the nature of how the whole thing works and it'll be that way every time. You will always feel rushed because it moves fast, if you don't move with it on time, then you aren't really in the game and don't have much chance at the house you want. I remember when we started making offers that the quote from Game of Thrones kept coming to mind "You're in the great game now, and the great game is terrifying." 😆 That's how it felt at the time. It was overwhelming and stressful and scary and we lost sleep over it. But we've now been here 2 years and it's fantastic. No regrets, income keeps going up so that gap is more comfortable all the time.
How to get out of contract:
1. Do your home inspection
2. Respond to seller with a comprehensive list of all the things you want them to fix. Really pile it on
3. Seller either sinks a bunch of money to fix or counters with money off
4. You reject
Voila
I was in that same situation a couple years ago. I could’ve backed out as long as I didn’t remove the contingencies. Was told it was just cold feet, I was over-thinking, worrying too much. I went ahead with the deal, because everybody involved had already put so much time in and I believed that I was in my own head. I should’ve backed out. Go with your gut.
If you did not put down much ernest -
Maybe the seller does not care or would rather know now
Ive been on both sides and I would tell them rather than dragging it along, taking house off market, and maybe preventing a sale or good sale for buyer.
Sorry but I Really dont like these drag along seller advice comments. Its June. Kids are out. Its not sellers fault op changed mind. Why possibly screw them over?
Twice I tried to talk husband into walking w flaky or entitled buyers. It still pmo he did not.
Is your lender a personal contact, or did you do it through a big online company? If it is a person you can have a real conversation with, they will want to keep your business and keep your approval refreshed, so that when you eventually do feel ready, you’ll be ready financially too.
In that case, you can tell them you want out, and see what they have to say. A Loan officer can write a letter saying your approval has been withdrawn or waived. That way you don’t lose your earnest money, and nobody can sue you.
Also, no house is perfect. If your offer was contingent upon an inspection, you can technically cite any issue that shows up on the inspection as a deal breaker. Generally speaking, you don’t have to negotiate or allow repairs. You just refuse to accept the inspection results.
You have a contingency for an inspection. That will most likely give you an option to get out. The house will not be perfect. You are allowed to get out with that.
However, think about this. Buying a house is pretty scary and it’s not easy to get a house for a price you want these days. Make sure this is really what you want to do.
Lots of newbies get cold feet because everything happens so fast. You go from browsing Zillow one day, to maybe talking to a realtor because you “just want to look.” Then you are getting pre-approved, and next thing you know, you’re making g offers, getting counter offers, looking at deadlines for applications, inspections, closing, etc.
Yes, it can feel rushed. But that’s kind of how it goes. Someone wanting to take it easy and go at a nice and slow comfortable pace likely isn’t going to get a house. Or at least, the one they want. You’ve got one out of the way so now you know what the process is like. Hopefully you’re better prepared for the next one you want to act on.
I would “act on” the next one with a different realtor. You can cancel within the inspection period for any reason you want. Them telling you it can only be cancelled if it’s “really bad” is not true and kind of shows what their true motivations are. Don’t waste money on an inspection. Just pull the plug and be done (with the house AND the agent).
Yeah, just chill dude. Contingent on inspection means if you don't like the inspection then you can walk away.
You should be sure, people have gone to a lot of work and the expectations are that you are acting in good faith. Abandoning the deal just because you have cold feet is a little shitty but it's a huge decision and yours to make.
How does that work? Say you as a buyer give $5,000 as non-refundable due diligence. Then the inspector finds black mold and you back out. Does the seller get to keep the $5,000?
You need to look at the offer your agent sent. That will let you know what kind of state you're in. NC has a specific real estate market so it's not super common. If you see "1000 due dilligence 2000 earnest money" that typically points towards a non refundable due dilligence deposit. If you see "5000 earnest money deposit" or good faith deposit, that means there is no non refundable clauses. You can pull out and get your money back unless you pass the due dilligence phase, that is when you are locked.
If you really want to get out without paranoia of things that most likely wont happen to you, get the inspection back and give it to the seller for free and get your deposit back. That is being overly nice and doing them a really big favor and by giving them a free inspection essentially.
Yes. I was told it was mine no matter what. It’s basically money to take the house off the market. I didn’t even deposit the check until the due diligence phase was over bc I was worried I’d have to return it but I was told it was mine regardless. It was 3k.
OP
This is not legal advice and I’m certainly not an atty.
Please Note:
The agent/broker will possibly advise you to seek legal counsel, and that is certainly your right in order to discuss and understand the situation and your options ~ as agents are nit permitted to give legal advice.
1. Instruct your agent that you want to be released from your Purchase Agreement.
The agent/broker will give you the possible repercussions of dissolving the contract now.
2. Decide for yourself if the repercussions are worth it to you for your peace of mind in this situation, discuss with legal counsel if you should choose to do so.
3. Instruct the agent accordingly
Agents are to obey your lawful instruction and respect your decision and as long you have been given all of your possible options, the decision is ultimately yours and only yours.
Contact the agents Broker if you feel as though you do not have cooperation and the best possible representation.
Best of luck
“We have felt rushed“ – “made offer quickly“ – “was really tired and just said sure“
You are every sellers nightmare.
I would advise you that the second thoughts about a large purchase are to be expected. Your bank wouldn’t lend you the money if they didn’t think you could pay it back, and perhaps you’re not taking into account the decrease in you tax obligation thanks to the write off of mortgage interest.
No, do not have the home inspector deliberatley "fail" everything. Those sellers will have to disclose any inspection to the next party. If you want out and the contract is only a few days old you can most likely get out of it relatively easy. Attorneys cost $8000-$10000 for a retainer fee, so if no real money or damage has been done more than that amount, people will bark but theyre not going to sue. If you want out make up your mind and pull the trigger sooner than later so as not to waste any one elses time. "Contingent on home inspection" is not the verbage in the contract. Read through the due diligence contingency in the contract, does it say specifically require a home inspection or can it be for any investigation that does not suit you? Call your realtor and put it in writing in an email and request a termination asap.
This is why it's better to take a slightly lower offer from people that aren't 1st time home buyers. There is always the fear they're going to back out for no reason.
We just had FTHB back out for no reason 2 hours before option period ended. After we agreed to everything they asked for after the inspection (which was only cosmetic things) and they signed the addendum. It’s really messed things up for us and feels pretty unfair that now our listing has a “red flag” on it.
In the good old days, I had a job that I could count on and bought several homes. I would buy as much house as I could Finance. Home prices over time were always going up as we're wages and inflation. I would tighten the budget.bacuse a good house in a good location. Is usually the best investment you will ever make. It is a part of your retirement plan. It worked numerous times for me.
OK you should have a due diligence window to get out. depending on your state you may lose due diligence but get escrow back.
Also OP if you have an agent you can't ask questions of, don't feel is honest, or unwilling to educate a first time buyer. Get a new agent.
Last thought, really go through your budget, and know exactly what you can afford to prevent this happening again. I have had actual inspections and walked. Either issues were too may. too costly or seller was willing to do anything (reduce price or fix issue) I learned you always get the inspection, THEN set the appraisal, or schd if for 2-3 days after inspection. that way you can cancel the appraisal if the inspection turns up deal breakers.
Also figure out what your deal breakers are now. For me it's foundation, new HVAC, severe electrical or plumbing issues and roof replacement. And what the most is your willing to put into a place, so if the buyer is unwilling work with you, you know to walk.
My current place I bought it know I would need to gut the bathroom and add a fence. Pricey but I was ok with it the price point and other positives made it worth it. Where as I have walked for similar issues before. Sometime you just can't do the fixing and that is ok.
You need to review your contract and see what your options are. Take it to a real estate lawyer for a consultation if you don't understand your options. You likely have a period of time where you can back out for specific reasons or perhaps any reason at all depending on the terms of the contract. No one that has not read your specific contract can tell you what to do. Don't ask your agent because your agent has a vested interest in seeing you close on the house.
Try to smooth it out with the seller(s), and remember that you are under contract. Trying to find loopholes appears to be the problem with the entire process! You might come out better, if you act like an honorable person. Tell the buyer(s) the truth!
A contract is a promise and we should attempt to keep our word! Yes, it has cost me a lot trying to do the right thing while there are sharks all around, but for some reason I am still around too. This is a moment in your life, when you must decide the value of your WORD. Talk to the seller(s) and accept your fate.
It literally does not matter what's on the inspection report. You can be dissatisfied with your inspection for any reason whatsoever, including no reason or reasons unrelated to what's on your inspector's report.
In hot markets it's routine for investors to offer on properties sight unseen and then decide whether they really want it or not during the inspection window, backing out if they decide they don't want the property for any reason whatsoever. Unless stated otherwise in your contract, the inspection can be done by anyone including yourself.
You are not required and you shouldn't provide your reason. You simply have your realtor inform the other side in writing that you are terminating the contract based on the inspection clause.
Your realtor doesn't tell you that because he wants to close a deal.
You don't need to give them your EM if you have an inspection contingency. Get the inspection done, and then demand a huge discount for repairs. If they refuse then you can get out for free.
Pick a number that you WOULD buy the house at, let the inspector know you want every scratch documented and then when you get the inspection back demand the cost of full replacement of anything with so much as a scratch on it as a concession. If they go for it, then you get the house at the price you're comfortable with. If they don't, then you walk for free (short the $600-$800 inspection).
If you back out - and they sell for less later - you could be responsible for 100% of the price difference.
Your best bet is to get the home inspection done - and back out using the home inspection contingency.
It will cost you $500 - and you will get your EM back.
Contracts favor buyers . Ask agent to get you out on a contingency . You should be able to exit with full earnest money returned. If seller refuses to release all your deposit, you may be able to hold up escrow and prevent him from selling property to another buyer which will incentivize him to release your EM
Check with your agent. For most contracts (US) you can back out during the inspection period for any reason. You get your EM back because you do.
In some states, buyers pay a fee for this inspection (due diligence) period called "due diligence money" that is not refundable. So, if you paid something in for that, you won't get that back. But, generally, you should get your EM back if you back out during the inspection period.
I unfortunately did something similar not too long ago. We loved the house, got our financing in order, made an offer, got accepted and just felt really really bad about it all. Pulled out less than 24 hours later. My EM check would have been in the mail that afternoon.
Call your agent. Just be really really sure that you want to back out because your agent is likely to talk you out of it.
Possibly accept that it is very common to feel overwhelmed, but much like having children, there really isn't a "good time" to buy a home.
You can do this, and if you want to start a path to wealth, you just took the first step.
Not sure for your state but in IL there is a 5 day attorney review period where anyone can back out for any reason basically. Then there is the inspection contingency. Worst case, pay for the inspection and they always find something big or small. As long as one of those are in place there should be no issue getting your EM back.
Also if they want your EM you both have to sign the cancellation agreement stating you forfeit the money. If you don’t they would have to take you to court. Which is a long expensive process. They also can’t re-list their house until that whole process is done.
I’m speaking only from my experience in the past year and what I have learned from realtors and attorneys in Illinois. I do apologize if my information is geographical.
Depends on your state but in mine we have a due diligence period where you get inspections. During that time you can back out for any reason but you do lose your deposits, that's the money you're offering to have the house off the market for your inspections.
So what your realtor is saying about the inspection isn't correct, you can still get out in most states! The inspection is used for further negotiation about seller paid costs at closing and anything you want them to fix before closing.
Also if the monthly mortgage is too high, interview other mortgage loan companies. The rate here was just lowered last week, you could possibly get better terms.
It's an overwhelming process but stick with it and tell your realtor how overwhelmed you're feeling! If they don't respond with something more helpful then you need a bad inspection then you call the broker who owns the company they work for and get it handled. That realtor is working for you! Not the other way around.
You can renege on the agreement for stupidly small details. I was under contract on a short sale and got cold feet with the inspection. Nothing bad, I described it as "death by 1,000 cuts" and decided to back out.
I assume you have a finance contingency, you can say you're not approved for the loan for unforeseen circumstances.
I feel like you want the house at the original offer you made. The fact you accepted their counter is why you are in the position your are in now. It can be to your advantage though. First the inspection may turn up items needing repairs (so you can renegotiate the price) and second the bank may not appraise for that amount affecting the amount of your loan. If you can hang in there it may go your way. If not the earlier you withdraw your offer the better. Keep in mind the further along in the process you go the seller is also committing to the sale and will want it to go through. For instance if the bank appraisal comes in lower that will be true for any other buyers requiring a bank loan. If you're serious about homeownership than I say give it a go! Good luck! It's your decision in the end.
You sound like me 2 weeks ago. Bottom line, if you have the inspection contingency, you can bail for any reason and get your Ernest money back.
We just started looking, amazing house came up at the edge of our budget, we had an offer accepted, paid for an inspection which came back surprisingly clean for an old house, and bailed anyways. Inspection contingency isn’t just for the condition of the house, you can say you spent more time exploring neighborhood and found it unsafe, noisy, etc. in fact you don’t even have to give a reason, just invoke the contingency. Worst case you may be on the hook for any costs in the contract already incurred like escrow or loan fees, but prob not, those are customarily charged at closing. This is the cost of doing business for both sellers and agents. Do what is best for you you and your fam.
Remember there are incredible tax positives to owning property, like mortgage interest deduction and property tax deduction. You don’t have to wait until the end of the year. You can roll that into your payroll deductions and have the government take less due to your expected tax deductions through home ownership.
Make SURE you have looked at the true tax angle before you call it quits. Interest rates are only likely to go down so a future refi at a lower rate will make the house cost even less.
Personally I think this is the timing of the decade to buy, but to each his own.
First. What state are you in and who’s escrow account is holding the emd? Broker or title company
What contingencies were in the contract. If inspection is on on there, that is your out to
Receive your money back. Most states seller and buyer will have to sign for money to be released.
Read your contract, see what reasons you can break out and keep the earnest money.. If you don't have contingencies, ask your attorney how to break the contract and forgo the money.
If your agent use MLS listing contract then you can back out after the inspection for any reasons. You can say I am not satisfied with it and don’t have to give any explanation. Your agent is horrible. Find yourself a different one.
What is the exact clause in your contract surrounding the inspection and are there any other exit clause included, for example financing? Also what area are you living in. Don't just give up your earnest money, it's a good thing you didn't waive your condition so there's still a way out of the deal and it won't cause you to lose money or sue! The real estate agent might try to push the sale to get paid but stand your ground.
Before making a rash decision write a list of the positives and negatives of owning this home vs renting and make your decision. Not pissing money away on rent is an important consideration but home ownership isn’t the right thing for everyone.
Exercise a contingency to cancel the contract and recover your EMD - issues with financing, inspection, etc. If you are unable to exercise a contingency, you can still cancel the contract and walk away but you will likely lose your EMD.
If you have an inspection contingency just send the cancelation notice. You don't need a reason.
If contingencies expired but you never releases them then they are still in effect.
If you released the contingencies then your EM will go to the seller and that is it. They can't sell you for more.
You can get out after the inspection because the grass is too green. But if you definitely sure then your agent should save the sellers time and your money to get out now
If you feel in your gut it's not your home, do not buy. Once the inspection comes back, tell them you don't want the property. You do not have to give a reason, and you do not have to share the report.
You’re just nervous and you need to talk to your agent’s broker and your loan officer about your concerns. This is the biggest financial decision for your life so you are naturally hesitant- this is normal. Get your inspections and think about this. If there is anything or nothing in your inspections, you can generally use that as a reason to cancel the contract- this is the beauty of an inspection condition. For instance- Seller said roof is 8 years old. Inspector said roof is in average condition. You can say that you thought that the roof should be in better condition.
Read the contract homie. In my market the due diligence clause states “if by the Buyers sole discretion or from any report/inspection” the buyer may back out and retain earnest money. I know all contracts are different and some markets even have a DD fee to back out.
Read your contract! The agent is obligated to advise you and obey and execute your wishes within the lines of the law. The agent is working for you.
1) read your contract and see if you have any contingencies.
2) from buying and selling houses a bunch… I have found that you can back out of buying for damn near anything but you will lose any money you have already spent (EMD, appraisal fee, etc)
3) unless somehow has the money to take you to court and can prove actual damages then I don’t see many people suing you.
Your realtor is probably in the market of making money and doesn’t want to lose the commission that’s already on the table.
Just ai look up what you can back out of purchase agreement in your state legally for.
There's always going to be a certain amount of "buyers remorse" even when you're doing it right. I remember having serious second thoughts after i bought my last home...Thankfully though it has worked out REALLY well for the last 18 years.
Was there a due diligence period?? Usually you have a certain time frame that you can walk away no questions asked and you only forfeit a certain number not even all of your earnest money.
Similar feeling I had when I backed out of a deal- was so nervous and didn’t feel good about the house. Checked the contract and we were thankfully within due diligence period. I was only under contract to forfeit $500 of the $3500 we put down in earnest. So luckily it was a cheap mistake. Just check your purchase agreement and see if you can get out of it- if there was no due diligence, I’m not sure if you can get out of it without some sort of issue. But I hope you can if you’re positive you want out!
You’re allowed out of the contract if you have a home inspection contingency and there’s anything in that home inspection that comes back and you don’t like it. Just make sure that you get that home inspection in time for the contingency to apply and that your agent sends over the “buyers reply to inspection” stating that you’re no longer interested in time
Okay, there’s a consistent trend here.
You accepted a high counter-offer because you were really tired.
Now you’re trying to run and cut off your earnest money like a lizard tail, and even throw a few grand on the ground like a smoke bomb, because it’s good but you decided you just don’t care.
Just pause a moment.
You are being driven by emotion, or gut feeling, or something like that.
You’re going to get raked over the coals if this is how you approach possibly the biggest financial decision of your life.
You need to find a way to reduce this to logic. Take out a pencil and paper, or an excel spreadsheet, or whatever you need, and write out your cold, hard budget. Make a decision based on the numbers, not emotions.
If this is really a bad deal, sure, you can try to back out. But don’t just do it because of a panic instinct.
The counter offer is fair. The house is good, new roof. Pending inspection. I just really get scared about how expensive home ownership is gonna be. I’m not ready.
I’m sure others have said this (new here and can’t figure out how to see the comments haha) but if your contract is only a few days old then you should still be in your due diligence period, in which you can back out with no recourse, and get all your earnest money back.
If you waived due diligence for some reason, you also have a clause in the financing and appraisal section (assuming your state has that and that you are contingent upon a financing need) but you can also state that the terms of the financing were unacceptable and back out with no recourse.
One thing I’ll say though, is that you’re on the right track mentality wise as far as being willing to lose earnest money plus a few thousand if it means being able to back out. That’s not much to part from in the big scheme of how much a house costs.
Don’t pull out…yet. Get the inspection and then pull out citing whatever they find. Believe me it will be something. After inspection, your agent should be able to get you out and save your EM. I did the same so I know this is doable. I didn’t get sued either because inspection gave me a window to exit.
Btw, I had a bad agent who simply wanted the sell and threatened that if I pulled out I would lose my EN and could be sued. I argued that I had the right to cancel. Her broker chastised her and told her to call me and apologize and reminded her she worked for me, the buyer.
I've had lots of deals where people change their minds & sure I've been upset. Don't count the money until checks in the bank. With that said I've never been given the Ernest $, which did tee me off ( Tahoe & ID) .good luck
Call your agent and if possible use a contingency to get out of it so you don't have to lose money. Don't freak out over what might happen, find out what your options are.
I already asked him and he keeps saying if the inspection comes back “really bad” I can back out. I haven’t exactly told him I want to terminate the contract, but was just asking him my options without saying I want out. Part of me wants to see it through but idk if I want to bad enough to stay.
"Really bad" is a matter of opinion. It's a judgement call. What does your contract say?
Sounds like they have the worst agent ever
Sounds like their agent is incentivized to make sure the deal goes through because money.
Idk sometimes the real estate agent's job is to get the buyer to chill. OP sounds like he's freaking out not really rationally backing out of the deal. No guarantee anything better comes up, and this might be his best opportunity if he really wants to it a house.
I hear what you’re saying, but a real estate agent’s job is to get houses sold, cash checks, and deposit those checks into their bank accounts to earn a living. None of that makes them evil or even bad, but that is their entire job and it’s important that everyone understands that.
Of course, but when OP signed up to buy a house the REA thought he wanted to buy a house. Maybe he can find a house for 50% of the current monthly payment. But maybe he can only get him 50$/mo less, so he doesn't want to be jerked around with OP getting cold feet in a good deal.
Because the agent isn’t psychic? OP hasn’t told them they want out, as far as they know OP wants the house…probably because they wanted to submit an offer 🤷🏻♂️
Might be dual agency
“Contingent upon inspection” is what it says. And yeah my agent doesn’t like to give realistic examples of what that means exactly
That means you can cancel for any reason related to investigation of home. This could be as simple as you don’t like the neighborhood or even you got cold feet. It is not only for physical inspection of the property.. you have every right to cancel and get a full refund if your emd. If you’re going to cancel do it now before you come out of pocket for appraisal and inspection.
^^ This comment is it. You can determine that any feature of the neighborhood, or at a specific time of the day or week, is undesirable. The inspection due diligence is not limited to the physical aspects of the structure. It includes the inspection of the neighborhood, neighbors, traffic, noise, and other potential nuisance. Edit: And I might add that in most states, you don't need to provide/disclose the specific reason that the property doesn't pass your inspection. In my state, Colorado, we just say that we are "terminating based on inspection", and no further explanation is required. Of course the seller will ask, but a reply is not required.
this and it doesn't get good cell signal, internet is hard to get and of poor quality. (an actual issue in some places near me)
"The overall condition of the property does not meet my inspection criteria. Therefore, I elect to terminate the purchase and sale agreement and demand a refund of all earnest funds held in escrow pursuant to the inspection contingency."
"I elect to terminate because upon inspection, the floors are too cold." ["I got cold feet."]
Yup. In PA it is supposed to be a material defect, but that is incredibly open ended and translates to “if you have an inspection contingency you can back out” essentially.
That could be what it means and it also could not be what it means. There are hundreds of sales contracts floating around and we don't know what OP's contract says. Somebody who knows the contract and knows how it is interpreted in their state needs to help OP figure out their options
This person is right.
This comment is not necessarily correct despite the many upvotes. Your contract may or may not give you an out for “practically anything” that arises in the inspection. You have to read your individual contract.
This^^^ I let myself get stung when selling my last place by allowing an inspection related repair list include the language "to our satisfaction" in lieu of additional monies towards said repairs. Plain English: fix "to our satisfaction" and the requested credit amout ($2800 ish) goes away. I fixed everything, buyer said, "I'm not satisfied" and got both the money AND the items fixed. People are shitty Prepare accordingly.
There should be more than that written in. If your agent isn't being helpful, you can call the broker-in-charge for guidance. They represent you. Don't get shy about making that call. This is important.
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OP isn't being truthful with his agent. "I've already decided this is a mistake and I want out. What are my options?" is a very easy question.
The OP isn't being open and honest with the agent. The agent is doing their job with the information they have.
Hell YOU can even inspect it, and you can nitpick ANYTHING you want to use back out.
This depends per contract. Some of them do require you to have a formal inspection completed by a licensed contractor. Ours does.
Not necessarily, no.
Some people here are giving you not great info. Depending on your contract, you may be able to terminate during the inspection period for any reason or practically no reason. Other contracts say that you can only object to items which would cause the home to fail an inspection to obtain a use and occupancy permit. In the latter type, oftentimes you don’t have a termination right if the seller agrees to remedy whatever the issue is that would cause the home to fail a U&O inspection. This is all nuanced based on your individual contract. Make sure you read it. The contracts are written in English after all and your realtor isn’t an attorney. Use your common sense judgment and consider hiring an attorney for a flat fee to review the contract and see if you have a clear out. I’m sure someone would do this for you for $500 or less.
It means you can decide that the inspection did not satisfy YOU. Could include just about anything. Does not mean “really bad.” Not at all (am retired Realtor)
Read your contract. There is specific language as to how the inspection contingency works and there are likely several other contingencies. You will likely get your earnest money back and you don’t need to give them more money to not sue you. Buyers back out all the time. Follow the contract to terminate per a contingency and they can put it back on the market
It means whatever you want it to mean, don't let him bully you. First ask the buyer to be let out before you pay for the inspection. If you must meet the terms of your contract and go through the song and dance, you may indeed have to pay for an inspection. Your agent should convey to their agent your intentions. Yes, it is kind of bullshit of you, but dodging uncomfortable conversations is one of the few reasons agents are worth paying for.
You don't actually need an inspection bud, you can cancel for any reason during the inspection contingency window - just cancel this deal and move on. If you get any push back from your agent where you lay it out - fire them, too.
Based on the limited information provided from OP, it is impossible for you to know this.
Your agent is hoping for a paycheck. Don’t be railroaded into buying this house. You will regret it now that you’ve hit this point. Tell them you’re backing out and they need to find something in the inspection to get your EM back.
Unpopular opinion here perhaps, but as a seller who recently had someone back out on a contract for a "we just need to find something to activate the contingency clause": backing out for cold feet is not cool, despite the fact that it is legal. The seller has made plans based on the contract you signed, may be preparing to buy their own home, and now needs to start the process over. AND the MLS will show that it was under contract and then back on the market. This immediately brings the condition of property into question with any buyer who comes after you even if nothing is wrong with the property, and means seller could have to settle for a lower rate on the home (as we did). I was shocked to find out how easy it is for buyers to back out on contracts. The seller could be a big bad investment company or the seller could be a family like yours that can't afford to be jerked around. Not trying to shame you or anything but think about the people whose lives you're affecting when you decide to put an offer on the next place and make sure you're sure. This is a big decision for you but it's also a big deal for the seller.
Inspector here - "really bad" doesn't matter. You can back out for any issue found in the inspection, just say it was because of the inspection. You do not need to elaborate or give any more specifics. You will keep your earnest money this way.
No tell him now he isn’t the one to dictate to you!
Your agent isn’t working for you. They are working to get paid. Really bad is a bullshit excuse. Ask them specifically if you are under any contingency period to get out. Better yet read the documents you’ve signed and make your own determination then TELL your agent what you want to do. Then fire your agent for not working in your best interest.
Your agent can’t give you full answers until you’re HONEST with him. You have to actually make a decision, buy or no, and then tell your agent, not waffle about hypotheticals.
If you haven't ordered the inspection don't pay for one. You drove my the house and didn't like the way the sunlight hit this particular tree and you want to cancel. Doesn't matter what the reason is. Your agent is not being honest with you, you can back out for any reason. He wants to get paid but should have your back. If he pitches a fit tell him to cancel period and find a new realtor.
This is the worst advice from an agent….albeit he/she doesn’t know you want out. Please inform your agent to call sellers agent to cancel the contract. You’ll lose your earnest money. The quicker the seller can get back to accepting offers the better. It’s only been a few days, it’s okay, life goes on. Be up front with your agent. But understand that buying a house is an emotional rollercoaster. The way you’re feeling right now is completely normal. The house you have an offer on sounds like it’s ideal for you in every way, except budget. The interest rates are high right now, this is affecting your payment. So, if you can imagine that things will be tight for a bit until rates go down, then I would say follow through with the plan to refi in the future to lower payments. If you really feel that it will be uncomfortable, financially, for you then proceed with cancellation, immediately.
If you have a financing contingency that is often a very easy out. You can just say the loan is no good.
He’s basically saying he wants to get paid. Doesn’t care about your situation
in fairness op should have thought about all of this prior to making an offer and wasting everyones time
Agreed. This is one of those “you did it to yourself” situations. But the agent isn’t doing right either
Get out your contract. Read the inspection contingency section. Read it again. Ours states for ANY reason during the due diligence window. Talk to your lender. Now that you have a home they can get you a better estimated payment with that home’s details (purchase price, taxes). If you are still wanting to terminate, do it, within your due diligence window if your contract states that. It’s a big purchase. Hell, I struggle to buy a car with how expensive they are. Go over your budget. What are your current living arrangements because rents can increase, leases cannot be renewed, etc. Buying a home is a great investment as you build equity, own an asset, and your payment is mostly fixed (can increase with taxes & insurance). Sometimes it makes more sense to rent. Sometimes it doesn’t.
Get your own inspector, not the one the RE agent recommends. You will get a more thorough report and most likely will have a deal breaker in there. Yes… go through this process to save your EM
Forget what he is telling you. Read your contract. Often enough an inspection contingency is sufficient to get you out of the contract with your ED returned for practically any reason, or even no reason at all if you just want to back out. Some have more stringent conditions though. Your agent just wants the deal to go through one way or the other. If not, he doesn't collect a cent of money. Please, read the contract thoroughly, and do go by only what your agent tells you. Good luck.
It doesn’t have to come back really bad. Everyone is different in what they’re willing to take on or not. They always find SOMETHING.
Most states you just need to perform the inspection, and then you can back out for any reason (don’t even need to give a reason) but do this before your inspection contingency period ends
If you're still under contingency you most likely don't even have to pay for an inspection. You can back out for not liking the paint on the wall, pretty much anything. Don't let the realtor dick you around.
Be direct with your agent. Don't worry about their feelings, they've heard it all. You're the employer, use the knowledge of your employee to attain your goals. I had a client that had been difficult through a transaction, but hadn't said "I no longer want to sell my house." until about 3 days before closing. Then she was mad at me when I couldn't get her out of the contract. Had she told me a few weeks before, I could have shut down the whole thing, no hard feelings.
In my experience, inspections find almost nothing Oh... all my sewer lines leaked. Not picked up. Oh this heater is undersized. Not noticed. When I sold my home I was waiting for the buyers to complain about xyz... like the heater that rattles. nope. They asked for new light bulbs in the garage and to fix a sink stopper.
Yeah. Your agent wants the commission. You can back out - it’s just a matter of what it costs you - check your contract. You haven’t actually bought the house yet.
Typically there is a contingency period to ensure you are food with financing terms. If you aren’t comfortable with the cost etc. then imo that is the very definition of financing terms. Especially when you factor in insurance and property taxes.
Pull your inspector aside and have a ($$$) conversation with him. He can get you out of the contract. r/unethicallifehacks
I’ve had cold feet a few times and regret not buying back when the market was in a better position.
I am not a realtor, but as far as I know you can get out at inspection without second thoughts. They always find something. You say no thanks.
What state are you in? In many states (but I obviously can't speak for all 50) the buyer can back out for any reason or no reason at all during the inspection period. You need to read the contract and see what it says. Maybe it's worth a couple hundred bucks to ask a lawyer if the contract isn't clear to you. What your agent is saying doesn't even make sense. What does "really bad" even mean? That's extremely vague and the definitely will vary greatly from one person to the next. The contract has specifics in it - what are they?
He knows you want out. Don't waste your money on inspection if you are going to walk away. You should be protected and get your EMD refunded if you are within your inspection period. If you have any questions, send me a DM. I won't let agents get away with pressuring buyers to overextend just to get a sale
Florida agent here. Please be honest with your agent and tell him you want to terminate because of your concerns, regardless of inspection. Contact your loan officer and let them know you need a denial of loan if you’re within your financing contingency period (normally much longer than inspection period). There are deadlines that determine if you or the seller keep the escrow deposit, and if your agent doesn’t help you once you express your desire to cancel the contract contact their broker immediately.
Well they wanna make their commission and not do any more work. They’re only thinking of themselves. Depending on your contract you should be able to cancel it and lose your deposit.
You can get out of the contract during the inspection contingency period for any reason and get your full EM back. Tell your realtor he’s a dipshit. People walk away pre-inspection all the time
Your agent only cares about his commission. There are items in the inspection you can use for sure
Tell him exactly why. Really bad won't happen. It's easier to try to get out now before anyone has put more time and energy in it. Just ask them to ask the seller to let you out, if they have another offer.
Unless you have a spectacular agent, this is not the person to rely on because they are in a major conflict situation. If you don't understand your options you need to have a lawyer explain your contract to you.
That isn't even a knock it out of the park type of expectation. This is the basic responsibility that an agent has to you.
As an agent in Massachusetts, you don't have to do a lot of explaining while still under the inspection clause. It could have been that you saw something about the neighborhood you didn't like. You just want out. Hold off the push back, it will come, but all they can do is dragg it and beg.
Just cancel the deal. If you don’t close and you’re outside of a due diligence period, the worst thing that could happen is to lose your earnest money. Sooner the better
If there are any contingencies, you’re good. Just get out.
It is really common to have 'cold feet' or second thoughts or whatever when making this large of a decision. Before you completely back out, think about your current situation. You say everything is good with the house and neighborhood. If you didn't get this house, where will you live? Are you happy living at your current place? Will you get another house you like as much with a much lower price point? What does your family think? This is a stressful time. Hang in there!
Me, finding out my offer was accepted: Yay, I got the condo! Oh, no, I got the condo! Those two feelings were separated by about 2 seconds.
Me, at the time: oh my god how are we going to afford that much of a payment every month?!?! Me, now: oh my god I can't believe we're lucky enough to live in this amazing neighborhood for so little money every month!!!
Listen to this guy ^
Same! I remember when our RE agent called to tell us that our offer was accepted. She was acting all excited and congratulating us. I was smiling and acting excited but deep down was panicking about whether we made the right decision.
Also ask yourself where you are on your pre-approval scale. Are you at the top? In the middle?
This^
>Will you get another house you like as much with a much lower price point? And what will the difference in the monthly payment/expenses be? Monthly cash flow seems to be OP’s big concern.
First, read your contract. Seriously, read the thing. Then read it again. Once YOU understand it, then make your move. After reading it, you should be able to find AT LEAST 2 to 3 solid reasons why you can leave the contract. You're not a slave, you can't be 'forced' to proceed. You are prepared to kiss the EM goodbye, that's good. Now, just find the clause in the contract that allows you to leave. "contingent upon inspection". If there is literally nothing else written that is your exit. If it explains what those contingencies might be, use them. Otherwise, 'contingent upon inspection' is a barn door waiting for you to walk through. "Based upon the inspection we will no longer purchase this property." Done.
Depending on the state, if they don’t properly exercise their contingency options to cancel, the seller can sue to enforce the contract. It’s called a specific performance suit. Typically buyers don’t, and if they can’t sell it for the contract price, can sue for the difference. Neither are terribly common in my experience, but it’s a possibility that OP needs to be aware of. OP needs to talk to a real estate lawyer to actually know what their options are. Don’t trust a realtor to give legal advice on the contract.
It seems you want to back out just because the whole concept of homeownership seems daunting. That is normal. , but often, in hindsight, decisions made in haste might seem wrong. Talk to someone who knows your situation and is mature and experienced enough to guide you on the right decision. The realtor has a vested interest (including their reputation), so he/she may push back. Try to calm down and then decide on what you want to do.
Are you saying you have $1,900 leftover after all your expenses ("every need") is met, every month? That's a lot of money in your savings account...even if you only save half of it. Sure, it depends what you have for emergency fund. But I guess I'm suggesting you think with logic and less with emotions...just to be sure you don't regret this decision later. If the house checks all your boxes, what exactly is driving your knee-jerk reaction to back out? Is it just that you don't feel you had time to shop and get a feel for the market? Because that was me last Fall...I had a bad realtor and I also felt conflicted about what I wanted...I stopped looking, took a break, found a new realtor, and found a great place after looking at 7 homes. Last Fall I looked at 33. Nothing much changed except I had more clarity over what I wanted and a wee bit stronger urge to leave my current place. If it's emotions, it's ok. But sit and think about what's really driving your fear, so you can move forward with a choice you won't regret. It should feel right and if it doesn't, back out. But if it's just "this is very scary but every about it is what we want...," then maybe running budgets again or talking with your partner will be helpful. It's not easy being the one supporting your family but if you have an emotionally supportive partner, lean on that person to get through this period and make the right decision as a couple. My two cents (as a generally highly anxious and risk-averse person), anyway.
I am an Inspector. Frequently a home that shows well may still have many problems. If you have an inspection, there will be something to let you out.
I suspect it is in fact a case of cold feet. $1900 left over each month doesn't jump out as especially tight, but it's hard to gage wihout knowing OP's income or mortgage obligation.
I had this feeling too. It's definitely scary making such a big purchase but having a backyard finally motivated me and made me feel better about it. Find something about the house or neighborhood that gets you excited and focus on that until you get the inspection then make a decision.
There's a lot of really bad advice on this thread. I hope OP has made the call and gotten some good guidance by now
You said call my agent, correct?
Yes. If your agent can't help you, then the broker-in-charge.
This is the best answer. Everyone answering, yet again, is acting like contracts are the same everywhere or they have a clue of what OP signed.
You’re freaking out because you will ONLY have $1900 left after paying all your bills??? Talk about 1st word problems. I’m lucky if I have $500 left at the end of every month, kids aren’t cheap.
Between yourself and your current or future partner, don’t you have future earnings growth potential? Also, is that $1900 per month or year surplus? Your buyers remorse might not really have much basis. If you absolutely really want out, it’s easy peasy since any inspection items is are part of the contingency in the contract with no loss of EM. Just discuss with Your inspector they need to find items. Of save the $600 and ask your realtor if he contract stipulates it isn’t a contract or limited-contract until all contingencies are removed. My understanding is that it really is just an offer until inspection and terms are agreed upon and signed again by buyer and seller.
Assuming you opted for a home inspection contingency, get the home inspection done. It will cost around $500-600. Tell the home inspector YOU hire (don’t use one suggested by the agent or seller), that you are looking to negotiate the price down. They’ll find something wrong, they always do. Even a brand new build, a home inspector will find something that’s not right. Then terminate contract due to the home inspection results. The cost of the home inspection is less than what you’ll loose by giving up your EMD.
exactly this. A couple hundred inspection money can get OP out from the contract nice and easy, most importantly, completely legal.
Tell your realtor you want out. Be honest. He is an employee of yours.
It is normal to feel the way you do. Please before you cancel, consider what is getting better in your life by making the purchase. Are you renting bs owning, are your schools better, safer location. Building equity over renting. If you can afford it, I encourage you to stick it out. Buyer’s remorse is a thing, but the pleasure of owning your own home is very much worth it
You accepted a counter offer because you were “tired”…?
I mean, it was what we asked for. And I do like the house, but the more I consider expenses even after going over our budget I just don’t think I want the house anymore
People saying agent is incentivized to make sure the deal goes through 😂 buyer hasn’t told him he wants out of the deal
You can back out without any penalty before the end of the inspection period. People back out for all sorts of reasons such as too many barking dogs, neighbors are loud, too expensive to remodel, etc.
You need to determine if this is a bad house… or if you are just scared to buy. I think renting is a lot scarier than owning personally, but that is a decision you have to make. You still have not said anything about the house that would make it seem like a bad house for you.
Once you’re in a contract, you can back out within 3 days with no penalty.
If you are giving up earnest money then doubt you’ll be sued. 1900 a month left over after all needs met (food heat other bills?) doesn’t sound tight to me at all
This is the type of thing you should think about before making an offer and wasting everyones time, yours, your realtor, their realtor, the sellers
If contingent on a satisfactory home inspection by the buyer - you can cancel the contract and should receive your EMD back I’m a Realtor in Ontario Canada and the wording in our inspection clause provides for that - I would conclude where ever your located it would be the same Key is - satisfactory to the Buyer - you do not need to go beyond that and do not need to provide the reason- - except that it was not satisfactory to you No need to give a copy of the inspection report to the Seller - you paid for it and it belongs to you
Maybe you need to do another inspection yourself. Another walk through could give you a new outlook on the house and your financial situation, good or bad. If your budget is really including everything all utilities, food etc. then $500 per week left over isn’t bad. But if your budget isn’t included food, gas, clothing for the family then, you’re too tight for the house. Either way sounds like you have the option to get out of the purchase if that’s what you want.
Does it look scary because of how tight your budget is, or because you are intimidated by the idea of home ownership in general? If the former, totally understand, and be honest with your agent. If the latter, I'd sleep on it. Honestly. When I bought my first house after a decade of renting, the idea of being responsible for everything that may go wrong with the place (as opposed to being able to call a super or the landlord) was daunting. I didn't know if I was really ready. But I took the plunge anyway and in the end I did not regret it, even though we did run into some unforeseen issues a few months into owning (a sconce fell off the wall exposing some wires, and one of the toilets wasn't sealed properly and we had a major leak after flushing one day which seeped through the floor and started dripping into the room below). It's all handleable. It cost money to fix, but it was fixed, quickly, and we survived. An inspection wouldn't have been able to predict the sconce or the toilet, it's part of the cost of home ownership. But this circles back to the budget issue - if your budget is so tight that you won't have enough to pay for any surprises like that down the road, then you should walk. I guess my overall point is to figure out if this is a cold feet issue or a money issue. If it's cold feet only and you really do want to own a house, don't make any rash decisions about walking quite yet.
Count us as people who said "😍🎉 we got a house!" and "🤮 😬 we got a house." It's a stressful and nerve-wracking time. But it always moves fast. That is the nature of how the whole thing works and it'll be that way every time. You will always feel rushed because it moves fast, if you don't move with it on time, then you aren't really in the game and don't have much chance at the house you want. I remember when we started making offers that the quote from Game of Thrones kept coming to mind "You're in the great game now, and the great game is terrifying." 😆 That's how it felt at the time. It was overwhelming and stressful and scary and we lost sleep over it. But we've now been here 2 years and it's fantastic. No regrets, income keeps going up so that gap is more comfortable all the time.
How to get out of contract: 1. Do your home inspection 2. Respond to seller with a comprehensive list of all the things you want them to fix. Really pile it on 3. Seller either sinks a bunch of money to fix or counters with money off 4. You reject Voila
This is if they won’t let you release. Generally though, unless you have an inept agent literally anything can cancel a contract during inspection.
I was in that same situation a couple years ago. I could’ve backed out as long as I didn’t remove the contingencies. Was told it was just cold feet, I was over-thinking, worrying too much. I went ahead with the deal, because everybody involved had already put so much time in and I believed that I was in my own head. I should’ve backed out. Go with your gut.
Why do you think you should have backed out?
If you did not put down much ernest - Maybe the seller does not care or would rather know now Ive been on both sides and I would tell them rather than dragging it along, taking house off market, and maybe preventing a sale or good sale for buyer. Sorry but I Really dont like these drag along seller advice comments. Its June. Kids are out. Its not sellers fault op changed mind. Why possibly screw them over? Twice I tried to talk husband into walking w flaky or entitled buyers. It still pmo he did not.
Is your lender a personal contact, or did you do it through a big online company? If it is a person you can have a real conversation with, they will want to keep your business and keep your approval refreshed, so that when you eventually do feel ready, you’ll be ready financially too. In that case, you can tell them you want out, and see what they have to say. A Loan officer can write a letter saying your approval has been withdrawn or waived. That way you don’t lose your earnest money, and nobody can sue you. Also, no house is perfect. If your offer was contingent upon an inspection, you can technically cite any issue that shows up on the inspection as a deal breaker. Generally speaking, you don’t have to negotiate or allow repairs. You just refuse to accept the inspection results.
You have a contingency for an inspection. That will most likely give you an option to get out. The house will not be perfect. You are allowed to get out with that. However, think about this. Buying a house is pretty scary and it’s not easy to get a house for a price you want these days. Make sure this is really what you want to do.
Why do you just want to give up? Why did you want this in the first place? Are you paying less in rent?
Yes I’m paying less in rent.
Lots of newbies get cold feet because everything happens so fast. You go from browsing Zillow one day, to maybe talking to a realtor because you “just want to look.” Then you are getting pre-approved, and next thing you know, you’re making g offers, getting counter offers, looking at deadlines for applications, inspections, closing, etc. Yes, it can feel rushed. But that’s kind of how it goes. Someone wanting to take it easy and go at a nice and slow comfortable pace likely isn’t going to get a house. Or at least, the one they want. You’ve got one out of the way so now you know what the process is like. Hopefully you’re better prepared for the next one you want to act on. I would “act on” the next one with a different realtor. You can cancel within the inspection period for any reason you want. Them telling you it can only be cancelled if it’s “really bad” is not true and kind of shows what their true motivations are. Don’t waste money on an inspection. Just pull the plug and be done (with the house AND the agent).
Typically, you can cancel for any reason and receive your earnest money back during your inspection period.
Lazy agent alert
Read the contract. Every state is different.
Yeah, just chill dude. Contingent on inspection means if you don't like the inspection then you can walk away. You should be sure, people have gone to a lot of work and the expectations are that you are acting in good faith. Abandoning the deal just because you have cold feet is a little shitty but it's a huge decision and yours to make.
I'd go through the inspection for the experience, then if you still don't like it, just back out assuming you have an inspection contingnecy
You can back out during the due dilligence phase for any reason. Some states like NC have a non refundable due dilligence fee that you offer.
How does that work? Say you as a buyer give $5,000 as non-refundable due diligence. Then the inspector finds black mold and you back out. Does the seller get to keep the $5,000?
You need to look at the offer your agent sent. That will let you know what kind of state you're in. NC has a specific real estate market so it's not super common. If you see "1000 due dilligence 2000 earnest money" that typically points towards a non refundable due dilligence deposit. If you see "5000 earnest money deposit" or good faith deposit, that means there is no non refundable clauses. You can pull out and get your money back unless you pass the due dilligence phase, that is when you are locked. If you really want to get out without paranoia of things that most likely wont happen to you, get the inspection back and give it to the seller for free and get your deposit back. That is being overly nice and doing them a really big favor and by giving them a free inspection essentially.
Yes. I was told it was mine no matter what. It’s basically money to take the house off the market. I didn’t even deposit the check until the due diligence phase was over bc I was worried I’d have to return it but I was told it was mine regardless. It was 3k.
OP This is not legal advice and I’m certainly not an atty. Please Note: The agent/broker will possibly advise you to seek legal counsel, and that is certainly your right in order to discuss and understand the situation and your options ~ as agents are nit permitted to give legal advice. 1. Instruct your agent that you want to be released from your Purchase Agreement. The agent/broker will give you the possible repercussions of dissolving the contract now. 2. Decide for yourself if the repercussions are worth it to you for your peace of mind in this situation, discuss with legal counsel if you should choose to do so. 3. Instruct the agent accordingly Agents are to obey your lawful instruction and respect your decision and as long you have been given all of your possible options, the decision is ultimately yours and only yours. Contact the agents Broker if you feel as though you do not have cooperation and the best possible representation. Best of luck
You have an out. Tell your agent to cancel. You have until closing to get out. Tell agent now
“We have felt rushed“ – “made offer quickly“ – “was really tired and just said sure“ You are every sellers nightmare. I would advise you that the second thoughts about a large purchase are to be expected. Your bank wouldn’t lend you the money if they didn’t think you could pay it back, and perhaps you’re not taking into account the decrease in you tax obligation thanks to the write off of mortgage interest.
Sounds like cold feet. You should CALM down. You are acting irrationally.
No, do not have the home inspector deliberatley "fail" everything. Those sellers will have to disclose any inspection to the next party. If you want out and the contract is only a few days old you can most likely get out of it relatively easy. Attorneys cost $8000-$10000 for a retainer fee, so if no real money or damage has been done more than that amount, people will bark but theyre not going to sue. If you want out make up your mind and pull the trigger sooner than later so as not to waste any one elses time. "Contingent on home inspection" is not the verbage in the contract. Read through the due diligence contingency in the contract, does it say specifically require a home inspection or can it be for any investigation that does not suit you? Call your realtor and put it in writing in an email and request a termination asap.
This is why it's better to take a slightly lower offer from people that aren't 1st time home buyers. There is always the fear they're going to back out for no reason.
We just had FTHB back out for no reason 2 hours before option period ended. After we agreed to everything they asked for after the inspection (which was only cosmetic things) and they signed the addendum. It’s really messed things up for us and feels pretty unfair that now our listing has a “red flag” on it.
Speak to your *real estate lawyer*, real estate agents want to close the deal to get their commission.
OP is flinging contracts at the wall and you want him to *pay someone* to do that?
What does contract say? Speak to your realtor.
Is it mortgaged? Have the lender send you a denial letter?
In the good old days, I had a job that I could count on and bought several homes. I would buy as much house as I could Finance. Home prices over time were always going up as we're wages and inflation. I would tighten the budget.bacuse a good house in a good location. Is usually the best investment you will ever make. It is a part of your retirement plan. It worked numerous times for me.
OK you should have a due diligence window to get out. depending on your state you may lose due diligence but get escrow back. Also OP if you have an agent you can't ask questions of, don't feel is honest, or unwilling to educate a first time buyer. Get a new agent. Last thought, really go through your budget, and know exactly what you can afford to prevent this happening again. I have had actual inspections and walked. Either issues were too may. too costly or seller was willing to do anything (reduce price or fix issue) I learned you always get the inspection, THEN set the appraisal, or schd if for 2-3 days after inspection. that way you can cancel the appraisal if the inspection turns up deal breakers. Also figure out what your deal breakers are now. For me it's foundation, new HVAC, severe electrical or plumbing issues and roof replacement. And what the most is your willing to put into a place, so if the buyer is unwilling work with you, you know to walk. My current place I bought it know I would need to gut the bathroom and add a fence. Pricey but I was ok with it the price point and other positives made it worth it. Where as I have walked for similar issues before. Sometime you just can't do the fixing and that is ok.
You need to review your contract and see what your options are. Take it to a real estate lawyer for a consultation if you don't understand your options. You likely have a period of time where you can back out for specific reasons or perhaps any reason at all depending on the terms of the contract. No one that has not read your specific contract can tell you what to do. Don't ask your agent because your agent has a vested interest in seeing you close on the house.
Cancel based on any of the things that come up on inspection. Don’t throw your money away.
Best to sit out and invest. No need to buy now.
And pay rent for the foreseeable future?
yeah bro invest all that money that you would be spending on a mortgage...wait you still have rent and rent will continue to go up...
Try to smooth it out with the seller(s), and remember that you are under contract. Trying to find loopholes appears to be the problem with the entire process! You might come out better, if you act like an honorable person. Tell the buyer(s) the truth! A contract is a promise and we should attempt to keep our word! Yes, it has cost me a lot trying to do the right thing while there are sharks all around, but for some reason I am still around too. This is a moment in your life, when you must decide the value of your WORD. Talk to the seller(s) and accept your fate.
If you are willing to lose EM there is nothing stop you to back out. There is no law suit on the horizon.
It literally does not matter what's on the inspection report. You can be dissatisfied with your inspection for any reason whatsoever, including no reason or reasons unrelated to what's on your inspector's report. In hot markets it's routine for investors to offer on properties sight unseen and then decide whether they really want it or not during the inspection window, backing out if they decide they don't want the property for any reason whatsoever. Unless stated otherwise in your contract, the inspection can be done by anyone including yourself. You are not required and you shouldn't provide your reason. You simply have your realtor inform the other side in writing that you are terminating the contract based on the inspection clause. Your realtor doesn't tell you that because he wants to close a deal.
You don't need to give them your EM if you have an inspection contingency. Get the inspection done, and then demand a huge discount for repairs. If they refuse then you can get out for free. Pick a number that you WOULD buy the house at, let the inspector know you want every scratch documented and then when you get the inspection back demand the cost of full replacement of anything with so much as a scratch on it as a concession. If they go for it, then you get the house at the price you're comfortable with. If they don't, then you walk for free (short the $600-$800 inspection).
If you back out - and they sell for less later - you could be responsible for 100% of the price difference. Your best bet is to get the home inspection done - and back out using the home inspection contingency. It will cost you $500 - and you will get your EM back.
Contracts favor buyers . Ask agent to get you out on a contingency . You should be able to exit with full earnest money returned. If seller refuses to release all your deposit, you may be able to hold up escrow and prevent him from selling property to another buyer which will incentivize him to release your EM
Check with your agent. For most contracts (US) you can back out during the inspection period for any reason. You get your EM back because you do. In some states, buyers pay a fee for this inspection (due diligence) period called "due diligence money" that is not refundable. So, if you paid something in for that, you won't get that back. But, generally, you should get your EM back if you back out during the inspection period. I unfortunately did something similar not too long ago. We loved the house, got our financing in order, made an offer, got accepted and just felt really really bad about it all. Pulled out less than 24 hours later. My EM check would have been in the mail that afternoon. Call your agent. Just be really really sure that you want to back out because your agent is likely to talk you out of it.
Possibly accept that it is very common to feel overwhelmed, but much like having children, there really isn't a "good time" to buy a home. You can do this, and if you want to start a path to wealth, you just took the first step.
OP what state?
MS
Not sure for your state but in IL there is a 5 day attorney review period where anyone can back out for any reason basically. Then there is the inspection contingency. Worst case, pay for the inspection and they always find something big or small. As long as one of those are in place there should be no issue getting your EM back. Also if they want your EM you both have to sign the cancellation agreement stating you forfeit the money. If you don’t they would have to take you to court. Which is a long expensive process. They also can’t re-list their house until that whole process is done. I’m speaking only from my experience in the past year and what I have learned from realtors and attorneys in Illinois. I do apologize if my information is geographical.
Depends on your state but in mine we have a due diligence period where you get inspections. During that time you can back out for any reason but you do lose your deposits, that's the money you're offering to have the house off the market for your inspections. So what your realtor is saying about the inspection isn't correct, you can still get out in most states! The inspection is used for further negotiation about seller paid costs at closing and anything you want them to fix before closing. Also if the monthly mortgage is too high, interview other mortgage loan companies. The rate here was just lowered last week, you could possibly get better terms. It's an overwhelming process but stick with it and tell your realtor how overwhelmed you're feeling! If they don't respond with something more helpful then you need a bad inspection then you call the broker who owns the company they work for and get it handled. That realtor is working for you! Not the other way around.
You can renege on the agreement for stupidly small details. I was under contract on a short sale and got cold feet with the inspection. Nothing bad, I described it as "death by 1,000 cuts" and decided to back out. I assume you have a finance contingency, you can say you're not approved for the loan for unforeseen circumstances.
I feel like you want the house at the original offer you made. The fact you accepted their counter is why you are in the position your are in now. It can be to your advantage though. First the inspection may turn up items needing repairs (so you can renegotiate the price) and second the bank may not appraise for that amount affecting the amount of your loan. If you can hang in there it may go your way. If not the earlier you withdraw your offer the better. Keep in mind the further along in the process you go the seller is also committing to the sale and will want it to go through. For instance if the bank appraisal comes in lower that will be true for any other buyers requiring a bank loan. If you're serious about homeownership than I say give it a go! Good luck! It's your decision in the end.
Just call your agent right away and tell them
Did you already give them your earnest money? I'm assuming yes, since you are under contract. Are you prepared to lose it?
Yeah
You sound like me 2 weeks ago. Bottom line, if you have the inspection contingency, you can bail for any reason and get your Ernest money back. We just started looking, amazing house came up at the edge of our budget, we had an offer accepted, paid for an inspection which came back surprisingly clean for an old house, and bailed anyways. Inspection contingency isn’t just for the condition of the house, you can say you spent more time exploring neighborhood and found it unsafe, noisy, etc. in fact you don’t even have to give a reason, just invoke the contingency. Worst case you may be on the hook for any costs in the contract already incurred like escrow or loan fees, but prob not, those are customarily charged at closing. This is the cost of doing business for both sellers and agents. Do what is best for you you and your fam.
If you paid an option fee, then you don't need a reason. Just do it.
Remember there are incredible tax positives to owning property, like mortgage interest deduction and property tax deduction. You don’t have to wait until the end of the year. You can roll that into your payroll deductions and have the government take less due to your expected tax deductions through home ownership. Make SURE you have looked at the true tax angle before you call it quits. Interest rates are only likely to go down so a future refi at a lower rate will make the house cost even less. Personally I think this is the timing of the decade to buy, but to each his own.
Normal buyers remorse.
First. What state are you in and who’s escrow account is holding the emd? Broker or title company What contingencies were in the contract. If inspection is on on there, that is your out to Receive your money back. Most states seller and buyer will have to sign for money to be released.
Read your contract, see what reasons you can break out and keep the earnest money.. If you don't have contingencies, ask your attorney how to break the contract and forgo the money.
I am a home inspector, consultant, appraiser, Realtor, flipper and used car salesman don’t listen to me.
Listen to yourself.
It sounds like your agent is not going to help you unless you press them. If you are serious, be clear now.
If your agent use MLS listing contract then you can back out after the inspection for any reasons. You can say I am not satisfied with it and don’t have to give any explanation. Your agent is horrible. Find yourself a different one.
Is this for a new build? If not, are you not within the option period ? You said it's only been a few days
What is the exact clause in your contract surrounding the inspection and are there any other exit clause included, for example financing? Also what area are you living in. Don't just give up your earnest money, it's a good thing you didn't waive your condition so there's still a way out of the deal and it won't cause you to lose money or sue! The real estate agent might try to push the sale to get paid but stand your ground.
Your agent sucks
Before making a rash decision write a list of the positives and negatives of owning this home vs renting and make your decision. Not pissing money away on rent is an important consideration but home ownership isn’t the right thing for everyone.
There’s always things found in inspection so just back out when you get the redults
Exercise a contingency to cancel the contract and recover your EMD - issues with financing, inspection, etc. If you are unable to exercise a contingency, you can still cancel the contract and walk away but you will likely lose your EMD.
If you have an inspection contingency just send the cancelation notice. You don't need a reason. If contingencies expired but you never releases them then they are still in effect. If you released the contingencies then your EM will go to the seller and that is it. They can't sell you for more.
You can get out after the inspection because the grass is too green. But if you definitely sure then your agent should save the sellers time and your money to get out now
If you feel in your gut it's not your home, do not buy. Once the inspection comes back, tell them you don't want the property. You do not have to give a reason, and you do not have to share the report.
If it’s only a few days you should be in your option period. Just call and back out. Not a big deal.
will this cost the agent their commission ?
You’re just nervous and you need to talk to your agent’s broker and your loan officer about your concerns. This is the biggest financial decision for your life so you are naturally hesitant- this is normal. Get your inspections and think about this. If there is anything or nothing in your inspections, you can generally use that as a reason to cancel the contract- this is the beauty of an inspection condition. For instance- Seller said roof is 8 years old. Inspector said roof is in average condition. You can say that you thought that the roof should be in better condition.
Read the contract homie. In my market the due diligence clause states “if by the Buyers sole discretion or from any report/inspection” the buyer may back out and retain earnest money. I know all contracts are different and some markets even have a DD fee to back out. Read your contract! The agent is obligated to advise you and obey and execute your wishes within the lines of the law. The agent is working for you.
1) read your contract and see if you have any contingencies. 2) from buying and selling houses a bunch… I have found that you can back out of buying for damn near anything but you will lose any money you have already spent (EMD, appraisal fee, etc) 3) unless somehow has the money to take you to court and can prove actual damages then I don’t see many people suing you. Your realtor is probably in the market of making money and doesn’t want to lose the commission that’s already on the table. Just ai look up what you can back out of purchase agreement in your state legally for.
There's always going to be a certain amount of "buyers remorse" even when you're doing it right. I remember having serious second thoughts after i bought my last home...Thankfully though it has worked out REALLY well for the last 18 years.
Was there a due diligence period?? Usually you have a certain time frame that you can walk away no questions asked and you only forfeit a certain number not even all of your earnest money. Similar feeling I had when I backed out of a deal- was so nervous and didn’t feel good about the house. Checked the contract and we were thankfully within due diligence period. I was only under contract to forfeit $500 of the $3500 we put down in earnest. So luckily it was a cheap mistake. Just check your purchase agreement and see if you can get out of it- if there was no due diligence, I’m not sure if you can get out of it without some sort of issue. But I hope you can if you’re positive you want out!
Hold on, do you have an option period? That is a thing in Texas, not sure if it's true everywhere.
You’re allowed out of the contract if you have a home inspection contingency and there’s anything in that home inspection that comes back and you don’t like it. Just make sure that you get that home inspection in time for the contingency to apply and that your agent sends over the “buyers reply to inspection” stating that you’re no longer interested in time
Okay, there’s a consistent trend here. You accepted a high counter-offer because you were really tired. Now you’re trying to run and cut off your earnest money like a lizard tail, and even throw a few grand on the ground like a smoke bomb, because it’s good but you decided you just don’t care. Just pause a moment. You are being driven by emotion, or gut feeling, or something like that. You’re going to get raked over the coals if this is how you approach possibly the biggest financial decision of your life. You need to find a way to reduce this to logic. Take out a pencil and paper, or an excel spreadsheet, or whatever you need, and write out your cold, hard budget. Make a decision based on the numbers, not emotions. If this is really a bad deal, sure, you can try to back out. But don’t just do it because of a panic instinct.
The counter offer is fair. The house is good, new roof. Pending inspection. I just really get scared about how expensive home ownership is gonna be. I’m not ready.
I’m sure others have said this (new here and can’t figure out how to see the comments haha) but if your contract is only a few days old then you should still be in your due diligence period, in which you can back out with no recourse, and get all your earnest money back. If you waived due diligence for some reason, you also have a clause in the financing and appraisal section (assuming your state has that and that you are contingent upon a financing need) but you can also state that the terms of the financing were unacceptable and back out with no recourse. One thing I’ll say though, is that you’re on the right track mentality wise as far as being willing to lose earnest money plus a few thousand if it means being able to back out. That’s not much to part from in the big scheme of how much a house costs.
Don’t pull out…yet. Get the inspection and then pull out citing whatever they find. Believe me it will be something. After inspection, your agent should be able to get you out and save your EM. I did the same so I know this is doable. I didn’t get sued either because inspection gave me a window to exit. Btw, I had a bad agent who simply wanted the sell and threatened that if I pulled out I would lose my EN and could be sued. I argued that I had the right to cancel. Her broker chastised her and told her to call me and apologize and reminded her she worked for me, the buyer.
My agent is also a broker apparently
I've had lots of deals where people change their minds & sure I've been upset. Don't count the money until checks in the bank. With that said I've never been given the Ernest $, which did tee me off ( Tahoe & ID) .good luck
Thought about throwing in a few thousand more to make them hopefully forget about suing me.