How Easy Is It To Get Out of a Contract?

You have been saving your money, watching your credit score, getting advice from friends and family and you think it might be time to buy your first home.

Understandably, you are nervous. So much can go wrong; You might change your mind, you might select one house only to find one you like better, you might lose your job. Any one of these things make you wonder if you should actually buy a new house. 

Are you wondering how easy is it to get out of a contract?

Last year, I wrote a post about this; What if I Change My Mind Can I Get Out of A Contract. It was one of my most well read posts. I know there are a lot of you who are wondering about this, especially given the unusual conditions in the real estate market over the last several years.

First off, if you think you might want to get out of a contract, because you might change your mind, I would counsel you that you are not ready to buy a new house. Changing your mind is not fair to the seller, the seller's agent, your agent, or anyone else involved in the contract.  There may be ways that you can get out of a contract, based on the remaining contingencies, but while it is possible, and legal, it is not advisable and it is not fair.

If you are concerned that you might find something better and want to get out of the contract, I would advise you that you aren't ready to buy that particular house. In life, there is always something better that comes along. You need to decide if you want to become an homeowner, with all the benefits and responsibilities, or sit on the sideline and wait for the 'best' possible property.  Buying a house comes with trade-offs. Sometimes, you buy a house because it meets all of your criteria, or maybe it doesn't. The house you buy needs to come close enough to your list that you won't have regrets later. Again, there are possible 'outs' to your contract, but it will depend on the timing and your contract.

If you lose your job, and have a financing contingency in your contract, you will likely be able to get out of the contract. You can't qualify for a mortgage if you need your job to qualify--and you no longer have it.

Contingencies in the contract are designed to help the buyer make sure that they are buying a house that they can afford, in the condition they expect, in a community that they can live in.  They are not designed for wishy-washy purchasers or buyers who are really not certain how they feel about the house or purchase.

When you decide to buy a house, make sure you are well informed about your personal situation and your personal goals. If you go into a home purchase with clear goals and a willingness to move forward, you will be rewarded with a house that you can make your own!

 

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I believe that buying or selling real estate should be a GREAT EXPERIENCE. If I can help you, your friends or family buy or sell their next home in Northern Virginia, please let me know!

If you need help with a home outside of Northern Virginia, I have an extensive network of referral agents and will make sure you are working with the best!

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