What if I Change My Mind? Can I get out of a Contract?

Hi Holly~  Buyers need to understand that contracts are legal and binding and not to even write it if they have any intentions of finding a way out!  If they are that unsure, then they don't need to buy it!

Wonderful post.  It wasn't so long ago that I had a buyer contract that went south when the home of their dreams became available... The fact that they attempted to back out of the contract less than 24 hours after ratification was a little more reasonable, not good of course, and we managed it.  But not without a lot of high anxiety (and a little bit of money).

Sound advice Holly. Here in Mass., if the buyer backs out they lose their earnest money deposit, usually 5% of the purchase price. Is there a similar practice in Virginia?  Also in Mass., most buyers use attorneys for negotiating the sale contract. Is that the case in VA?

Rich

Holly,

Well said and that buyer should be doing some soul searching afer reading this.

Great Post and reminded me to make sure buyer is firmly interested on the property. 

I agree with several of the comments made, if the buyers is already wanting to know if they can find a back door to exist the contract they are not ready.

I always get a little nervous when first-time buyers ask this question. As you so eloquently explained, they should make sure they are very committed to the process before writing an offer.

Great post and solid advice! I question the seriousness of any buyer who is looking for an "out" prior to even getting "in".  Thanks for posting!

If a buyer's contingency is written so they can get out of the contract if something comes up in inspections, then that is a contingency I am comfortable with. I don't want someone buying a house they are uncomfortable with. But as you say, it's not fair to tie up a house for someone who has buyer's remorse even before the ink is dry on the contract.

Excellent and informative post.

'...do not write a contract unless you are committed to closing. It is not fair to anyone else in the transaction."

It is amazing the number of people who do not take the home buying process seriously!

I have buyers who are just nervous about the process. They are feeling the pressure and do not want to be taken advantage of. If they are able to pinpoint why they are asking, hopefully it can be addressed and everyone moves forward.

Hopefully they are not putting pen to paper if they plan on bailing before the close.

Holly: do you know what I like best about your post? You start by clearly stating that your comments relate to a home purchase in Virginia. Thank you, thank you, thank you. I am always perplexed when I am juggling client issues that seem to be beamed into Illinois from Mars via the internet. I grit my teeth and work to find a gentle way to ask "where the heck did you pick up that cock-a-mamie nonsense"?  Each state has different contracts and contingency phases, and we must all stick to our state laws.

In any case, your post is very well-written and seems like it would be a great handout to any home buyer in Virginia.

Congratulations on the Feature.

Well done.  The transaction should begin with good faith.

That's a  question that gets asked a lot. If you are not certain that this is the home for you, stop. Period.

Sure you can get out of the contract, but you will lose your earnest money.  A seller shouldn't consider an offer unless the buyer brings serious EM.

I am glad he decided to check his sister's statement and asked the question. I agree that buyers should not be writing an offer if they are not sure about the purchase.

However I find that sometimes buyers are not 100% sure because they don't know how well the A/C is working or if the roof is leaking, etc. In those instances I will encourage them to write an offer and use the due diligence period to find the answers to those questions.

"But I might find something I like more..."  Like you, Holly, I let them know they should not put in an offer if they aren't serious - and we stop looking at other homes!

Another GREAT explanation Holly. Every buyer has their reservations but they may want to decide if they want to proceed before spending money on inspections.