What if You Change Your Mind About Purchasing a Property

We have seen purchase transactions, with the best laid plans, fizzle quickly, to our dismay, because a buyer gets cold feet for one reason or another.  All parties in the potential transaction, including the title company, mortgage broker, inspector, to the realtors work tirelessly for their clients. When that happens, you 'put on your boots'  and keep moving along with your chin up!  

Good point about the EMD.

Here is to rarely having to use an out!

Have a great week!

It's better to have a change of mind in the beginning, Belinda, rather than almost closing time. 

Just had a buyer back out of 3 contracts. There was an inspection clause that saved the deposit. Buyers remorse is not a good reason.

As disappointing as it may be for the sellers, it's best to happen early on rather than further into the transaction and closer to closing.  Congratulation on the Feature.

Paul Simon sang 'there must be 50 wasy to leave your lover". There are even more ways to get out of a contract and get you EM back in Oklahoma.

Belinda,

Your explanation is excellent and easy to understand.  I like Joe's comment on Paul Simon's song...I have a friend who wooed her husband with that song...LOL A

This is why I am careful about putting a sale pending sign on a listing.  We continue to show until the inspections are completed and sometimes, even until the appraisal is completed before listing the home as pending.  It makes buyers nervous to know other buyers are viewing the property and it keeps them on track as well.  Thank you for sharing.

Belinda, this is worthy of our thought.  I understand the three days to post earnest money deposit to be an administrative concession to the broker/agent, and not a seller's concession to a buyer.  We are representing, in the purchase agreement, to the seller that buyer has tendered in good faith a specified amount of money to be held in escrow by designated broker...

I understand things happen--I have witnessed such; but I would be slow to suggest to a buyer that it is no problem to walk.  On the contrary, I would be stressing that their execution of the purchase agreement comes after their giving thought and consideration [implication is "are you sure?, then are you ready to do this"].

Another part of this discussion should be as a caution to REALTORS® that we not pressure buyers into making decisions (multi-offers or not).  Haste makes waste.  About all I can do is encourage them to discuss making an offer, to weigh their decision, and to count the cost.  Yes, there are times when termination is the right thing to do.  Let us do it with good reason and full agreement.

These days contracts are written with buyers in mind and it's pretty easy to get out. 

Hello Belinda ... interesting post with some great comments, thanks for the read!

VB

Nice post Belinda, it makes sense.

Buyers have always had many opportunities to back out of a transaction, and that is why it iss important to really interview the buyer before signing a contract.

Belinda - Always interesting to me to see how the states have different rules and regulations for how Real Estate is handled. Good post!

Brenda-Most do not begin a negotiation with an idea of backing out once an  agreement is reached. But it is a good idea to know escape options before it's too late.

Belinda, This is critical for all buyers and sellers to understand about any offer to purchase. What is the release process if one should change their mind? When can they do it, how is it done, when it is too late. Great post!  Congrats on the Feature.

Just goes to show how different things can be in different states.  Here in NJ, we have an "attorney review" period after the contract is signed.  During this period, the we are not officially "under contract" and either party can cancel for no reason at all.  Once out of attorney review, and under contract, the contract cannot be cancelled without penalty unless there is no meeting of the minds for inspection issues or an inability to procure a mortgage.