Having buyer's remorse is quite natural for many folks and often shows up in a variety of places including purchasing a home. The anxiety of committing to a mortgage long term for a family home or even investment property can be unnerving and sometimes even downright frightening. Although a little concern is to be expected it is imperative to that you not let fear cripple you into not taking action. Taking no action can not only lead to your missing out on that "perfect" property, you have been looking for, it could cause you to miss out on much more than that.
A decision to walk away from a pending deal could cause you any earnest money you have put in place to secure your bid on the property. In the Columbus area, the seller can tie up your earnest money for up to 2 years if you decide to back out of the transaction for reasons not covered in the contract.
The following are a few of the contingencies that may permit you to get all or some of your earnest money back, if you decide to walk away and if the contingencies are listed in the original contract.
•· Running into financing issues and not being able to get the financing you were hoping to qualify for is an example of a contingency for buying a home. Although the Columbus Board of Realtors contract lists financing as a standard possible contingency, listing it specifically will better insure that, you will not lose your earnest money deposit should your financing go south or obtaining what you feel is acceptable financing becomes impossible.
•· Not selling your current Columbus area home can be another escape from a contract. This too needs to be specifically listed as a part of the sales contract. You must clearly state that the sale of your existing home must be final prior to closing on your new home.
•· Other good clauses to have in your offer are ones that provide contingencies for the appraisal, title, or inspection which can serve as protection, for you, in case you decide you need to back out of the deal. If the inspection comes back with undesirable issues, the title is not clean or the appraisal comes back less than the price you are planning to pay, you can have a legitimate reason to exit the purchase agreement.
Although a little buyer's remorse is quite natural there are times when the desire to get out of the contract are real and if you do not have proper contingencies in place can prove to be a costly venture.
Contact me at 614-273-6406 or Vanessa.simmons@realliving.com to help you to properly prepare a sales contract that will include appropriate contingencies to help protect your best interest
KEYWORDS: Columbus Area real estate
LINKS:
Earnest money: http://www.teachmefinance.com/Financial_Terms/earnest_money.html
contingency for buying a home: http://homebuying.about.com/od/buyingahome/qt/01408_RelContin.htm
Closing on your new home: http://www.amortgagepro.com/01home/closing.htm
See HUD Buyers Remorse: I Won the HUD Bid But....(I don't want the house)
Good points to keep in mind when drafting up a purchase agreement Vanessa.
~Chanda
Hi Vanessa, this looks like a good teaching tool for buyers. I think we used to have more remorse around here when the market was hot and people thought they had to say yes just to have a fighting chance at a home. Now things aren't quite as crazy and buyers have a bit more "thinking time" prior to going under contract. Better for everyone I think.
Hello Vanessa, that buyer's remorse does indeed pop up. In addition to earnest money being possibly at risk, with new construction extra funds for upgrade amenities also can be at risk. It is tricky to back out of something once making a commitment even though you are feeling sick to your stomach about the whole situation.
I agree with Wanda buyers are taking a lot more time picking out the homes. Maybe we will have less since they are taking more time deciding and not just "getting what they can before someone else makes an offer". Have a GREAT day.
Grea ideas!I like your graphics on your blog