Buyer’s remorse happens to most people. The fear of signing a long term deal with a mortgage company at the closing of a Chattanooga real estate deal, whether it is for a family home or investment property, can be frightening. It’s important to not let that fear get the best of you for several reasons. Not only will you lose out on that perfect piece of property you’ve looked so long for, you can lose a lot more than that.
Walking away from a deal before signing can mean losing any earnest money you have put down when you bid on the property. Unless you made a bid with no money to back your offer, which is highly unusual, you will lose it by deciding not to go through with the closing.
There are a few contingencies that may allow you to get all or some of the earnest money back when you walk away but only if you have listed those possibilities in the offer such as:
- Not getting the financing you’d hoped for. If you don’t list that possibility as a contingency for buying a home, even if you can’t get financed, you will lose your earnest money deposit.
- Not selling existing [city] real estate. Again, this only works if you included the sale of your existing real estate before finalclosing on the new home as a contingency.
- Appraisal, title, or inspection contingencies are also good clauses to have in your offer to protect you in case you want to back out of the deal. These allow you to change your mind if the appraisal value of the Chattanooga real estate doesn’t come back matching the price you are paying, inspections turn up problem areas, or the title has issues.
Don’t be fooled into thinking that you can back out of a signed contract bid because of those items if you do not list them as contingencies.
Let me help you prepare a proper real estate contract, including all contingencies. Contact me today at 423-488-1882 or email me firstname.lastname@example.org .