What Should You Do When Buyers Back Out At Closing?
For sellers, there are few things more disappointing than having a buyer back out at the last minute. At that point, inspections are done, packing may have started, and preparations are already in place. It may seem like the end of the world, but there are wise, planned ways to protect yourself and go on with confidence. Read on to learn more.
Stay Calm and Read the Contract First
The first and most crucial thing to do is read your purchasing agreement thoroughly. Real estate contracts spell out some conditions that let buyers back out lawfully, like problems with financing, the appraisal, or the inspection. Your next steps depend on whether the buyer behaved within their rights under the contract.
You might be able to keep the earnest money deposit if the buyer dropped out without a good reason. This is why earnest money is there: to make up for time and chances that sellers have lost.
Communicate With Your Real Estate Agent Immediately
You should call your agent first. A real estate agent with a lot of experience can swiftly tell you if the buyer’s withdrawal is fair and what to do next. They can also talk to the buyer’s agent to find out if the deal is complete or if they can change the terms.
Sometimes, purchasers back out because they are scared or unsure, not because there is a real deal breaker. Sometimes, a calm talk about closing expenses, repairs, or timetables can help get the sale back on track.
Understand Your Legal and Financial Options
You may have numerous choices if the buyer broke the contract. These can include things like keeping the earnest money, changing the terms of the deal, or, in very rare situations, going to court. It’s not usual or practicable to sue someone, but understanding your rights offers you power and peace of mind.
You should also look at your financial situation. Delays might change the price of moving, getting a bridge loan, or buying your next property. Your agent can help you make a plan to keep things as normal as possible.
Decide Whether to Relist or Pivot
If the offer is really dead, the next stage is to figure out what to do next. In many cases, the best thing to do is to relist promptly. Your agent can get in touch with purchasers who were interested in the past, change the price if necessary, and update the marketing to keep things moving.
You might be able to buy yourself some time while you look for a new buyer by using short-term rentals or changing the closing date.
Learn and Protect Yourself for the Future
You can’t control what every buyer does, but you can lower the danger going forward. Strong pre-qualification, good earnest money deposits, clear timelines, and well-written contingencies all help keep sellers safe. It makes a big difference to work with an agent that knows what they’re doing and can see problems coming.
Get Help from Professionals When You Need It Most
You don’t have to deal with a buyer backing out at closing on your own. We assist sellers at Craig Cherney Real Estate respond swiftly, defend their interests, and move forward with confidence and clarity. Call Craig Cherney today to talk about your circumstances and obtain professional advice that will help you stay on track with your deal, even when things go wrong.
Craig Cherney is a trusted client advisor and a sought after real estate lawyer and expert witness who is hired by the nation’s top Real Estate Litigation Attorneys to help resolve their litigated real property matters. Craig has appeared as a testifying expert witness before judges and juries in California, Arizona, Nevada and other jurisdictions across the country. Craig Cherney, Esq. Expert Witness Real Estate. 480-399-2342. If you are litigating an easement case, Craig Cherney might be able to help you advance and win your case.