Buying a home is an exciting experience. Emotions run high and available properties are running low. Sellers often use this to their advantage to get buyers to pay more for their homes. Once the more stressful part of the homebuying process kicks in, buyers may start to have second thoughts about the price. If a home they were more interested in suddenly comes back on the market at a lower price, this might make them want to back out of the deal to pursue that one.
The first question many people have is if it is even possible to back out of an offer that is already accepted by the seller. Bankrate notes that this is usually possible, but it may have consequences. It also comes down to the various contingencies buyers put in place before signing the contract and depositing their earnest money. Backing out of the deal during the contingency period also tends to be easier than trying to do so after it expires. After expiration, buyers may face both financial and legal consequences for the attempt.
U.S. News notes that one good contingency outside of solid contracts is working closely with a realtor. Buyers need to express any reservations early on so that a realtor can keep this in mind when negotiating terms and making an offer. Openness about the family’s needs, desires and financial situation may help a realtor better advise buyers on timing as far as entering the market as well. Sometimes waiting a month or two for things to settle down before purchasing is not a bad idea.
It is important to note that sellers may back out of a deal too. When they do, they typically use a kick-out clause. This allows them to take advantage of better offers that may come up after agreeing to sell to another buyer. It is not uncommon for sellers to resort to this in New York’s competitive real estate market.