When Can I Back Out if I Change My Mind About Buying a House?

If you are planning on buying a home soon, or are already in the process of buying one, then it is natural to feel a bit of trepidation. After all, buying a home is the biggest purchase that most people will make in their lifetimes, so of course you are going to wonder whether you’ve made the right decision.

If you put a lot of thought into the decision before beginning the process of purchasing your home, then you probably do not have anything to worry about. While you may experience some last-minute anxiety, those fears will soon fade away once you move into your new home and fall in love with it.

But sometimes, you might have a legitimate reason for wanting to back out of a real estate deal at the last minute. As a real estate agent in Alpine, TX, we have seen it happen before. Here is an overview of some reasons why people need to back out at the last minute, and how it works.

Why you’re backing out

When people need to back out of buying a home, their reason usually falls into one of two categories: either their life plans or situation has suddenly changed, or something is wrong with the house.

That first category can include things like the death of a loved one, a sudden unexpected breakup or divorce or a change in your job or income level. When one of these things occurs, most people are willing to part with a bit of their upfront cash to get out of the larger responsibility of buying a house.

When it comes to the second category, final inspections can sometimes reveal problems with a home that were not already evident. In this case, there might be a chance you can walk away from the deal without losing a dime.

Contingencies and loopholes

When backing out of a real estate deal during an escrow period, you will probably lose some of the “upfront money,” generally equal to two or three percent of the total home value. But if a final inspection brings new, negative information about the home to light, then there will likely be a contingency in your contract that you can use to get rid of any obligation on your end.

“Subject to appraisal” is another contingency you ought to put in your purchase agreement. If a bank or other lender does not determine that the home is worth what you initially agreed to pay, then you might be able to get away scot-free.

Ask your realtor

At the end of the day, the process for backing out of a real estate deal will depend on your unique situation. That is why it is so important to have a real estate agent in Alpine, TX whom you can trust to help you through every step of the process. Realtors know to expect the unexpected, so they are always prepared to deal with curveballs as they come up.

If you need a realtor’s expert advice, get in touch with Carpenter Real Estate today!