Buyer Backs Out

You choose how you live

It's time to start your new life

“Like a roller coaster thrill ride, the process of escrow churns out twists, turns and harrowing moments. The “earnest” deposit placed by the buyers can afford some peace of mind, but a time frame of contingencies means that the deal could fall through, even at the real estate closing. Sometimes the seller can retain the down payment or even sue the buyer for specific performance, essentially forcing them to buy the house. In other instances, the borrower can walk away from the table with their full down payment in their pocket.”

If you look at the many steps in the escrow, each can become an overwhelming problem.

You may feel compelled to make quick decision.

In fact, many cases end up in some sort of remorse.

For example, 63% of millennial home-buyers have regrets.

About 5% of real estate contract are terminated before closing.

blank, paper, pen

“Walking away from a closing happens more often in buyer’s markets than in seller’s markets. Some buyers become frightened when prices seem to be too soft, when they should be jumping with joy, and others are afraid of further declines in the market.

Other factors can come into play as well, regardless of the market. The fear usually begins to set in right after the purchase offer is accepted. Full-blown panic tends to set a day or two before closing, and buyers might be inclined to pull the plug. A buyer can back out of a purchase agreement, but it will usually hit them where it hurts—right in the bank account.

Therefore, do your home work appropriately.

How to do it appropriately?

It is actually dependent on your lifestyle.

If your lifestyle needs to be changed, it may take a while.

Nevertheless, change it.

For the time being, you can take actions in good faith.