So… what happens if you submit an offer, then feel like you have made a mistake?
Good question. In today’s competitive market buyers often feel compelled to make an offer quickly… sometimes before they are really ready to commit to a property.
If you submit an offer but the seller hasn’t accepted and signed it yet you can simply let them know that you are withdrawing your offer. With multiple offers this is easier than ever… sellers often give a deadline for offers and won’t make any decisions until after that deadline. It is likely not an issue if you withdraw your offer because they have other offers to consider.
If the seller has signed and delivered your fully executed agreement it is more complicated. Most purchase agreements have contingencies… make sure you understand the ones in your offer and when you can cancel without penalties.
- If your offer has a standard inspection contingency you have 3 choices following the inspection: (1) move forward as is; (2) move forward subject to the seller making some concessions; (3) cancel the agreement and have your earnest money refunded to you.
- If the property you are buying is part of a homeowners association, you will have 10 days to review the HOA documents and can cancel the agreement during that time without penalty.
- If your offer is contingent upon financing, make sure you understand the terms under which you can cancel without penalty.
So… you have some outs, but you shouldn’t make an offer unless you feel confident it is the right home for you.
That said… don’t be afraid to cancel the agreement when you feel certain this is not the right purchase for you. The sooner you come to that decision and act on it the better… for the benefit of both sides.
Your gut will typically let you know when you aren’t making the right decision. Did you know your gut has more nerves than your brain? Listen to it to avoid future distress!
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
