3 Tips To Handle A Home Buyer Backing Out Of The Sale
When a buyer backs out of the purchase of a home, the seller can be left in a tricky position. Not only is the seller faced with having to market the home again, he or she may have other consequences, such as dealing with two mortgages if another home was purchased in anticipation of the sale. If you are the seller, here are some options for handling a deal that did not close.
Talk to the Buyer
Before you take any legal action, take some time to meet with the buyer. It is possible that an agreement can be made so that the sale can proceed. You may have to make concessions to keep the sale on track, but if you can salvage the deal, it could be worth it.
Try to speak directly to the buyer even if you have been working with an agent. By talking to the buyer, you can try to get a complete picture of why he or she is unwilling to buy your home.
Review Your Purchase Contract
If the buyer is unwilling to proceed with the purchase of the home, it is time to review the terms of your purchase contract. The contract outlines under which circumstances the buyer can end the deal without penalty and what can happen if he or she does not end the sale for an acceptable reason.
It also explains what happens to the earnest money that was invested into the purchase of the home. Depending on your contract and how close you were to closing, it may be possible that you can keep the money.
Assess Your Damage
How much effort you put into an attempt to be compensated for the lost sale depends largely on how much damage was done to you. For example, if you had another interested party and he or she was willing to still buy the home for the sale price, there was very little damage done to you. It could be best to drop the issue and move on with the new buyer.
However, if you have already moved and do not have another buyer, there is significantly more damage. Work with a real estate attorney like Jack W Hanemann, P.S. to determine a fair value for the damage that you have suffered as a result of the buyer's decision not to follow through with purchasing your home.
Your attorney can help you determine if filing a lawsuit or another tactic, such as mediation, is the right move at that point.