Question

Can you get in trouble if you change your mind on buying a house after you’ve gone through the inspection? I’m having second thoughts and don’t know if there are any consequences for back out.  

Answer 1

I’m a real estate agent. It depends - you can always back out but where you are in the contract period determines the consequences. If you are in the “reply to inspections” period, you can probably use something from the inspection to walk away (every home has things wrong with it). You should be able to get your deposit back. If that period has passed, then you can hope that there’s an issue with the financing. In any event, you need to talk to your agent ASAP. There are very specific ways that you can get your money back & your agent will be the best one who can help you. If you really want out, you may need to be prepared to lose your deposit.  

Comments

@sitology77 thank you so much! As a real estate agent, is it also ever possible to lower the amount of the down payment or extend the closing date?  

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@aerometry the down payment is part of the contract you are making with the bank. It’s set based on the mortgage you applied for. You may be able to extend closing a little bit but the sellers would have to agree. And some mortgages say they have to close by a specific date. You definitely need to have an open discussion with your agent about whatever is going on. Even if it’s hard. they can’t help you if they don’t know what’s happening & there may be options you don’t know about. Every state has different rules so I can’t be more specific because I only do Pennsylvania, but call your agent today.  

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@sitology77 ok! Thank you!  

Answer 2

It depends. You will probably only loose the amount for the inspection fee. Possibly the good faith deposit too- if you had one. I’m not speaking of your down payment, but sometimes (like my husband and I) put an additional good deposit down, just so they knew we were serious.  

Answer 3

You can change your mind especially if the inspection was revealing. It is unlikely you would lose your deposit so early in the transaction.  

Answer 4

I'd ask your agent what the terms were in your offer.  

Answer 5

Ask your agent. If you are still in your option period you can back out and get back your earnest money.  

Answer 6

Usually just the cost of the inspection.  

Answer 7

I’d assume your contract was written to let you out if anything was found unfavorable- there is ALWAYS something in an inspection. You could use that something.  

Answer 8

Ask agent, your contract terms usually lose your earnest money. And if you had any stipulations in your inspection might use that too

Answer 9

Def consult your agent. They work for you!  

Answer 10

If your option period is over than you would be in default of performance and in Texas would Lose your earnest money and could be sued for performance and damages. I would talk to agent ASAP and see if seller would let you out without suit. Also if you are getting a mortgage than you may have to pay for survey or/and or appraisal if already done.  

Answer 11

What made you change your mind and what do your contract and agent say?  

Answer 12

We had a buyer back out at midnight when they were supposed to move in. We had to be out by midnight but the sale fell through. They refused to give us the Ernest money and even fighting for it we lost.  

Comments

@teodoro that’s crazy! What was their reasoning for why you wouldn’t get the earnest money? Also, where they moving in before closing? Or did they back out the night before closing?  

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@vanhorn I don’t remember. But even our realtor said it happens a lot. The night of closing. It happened three times with that house. Finally the owner of a realty company bought it off us because she felt bad.  

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@teodoro - wow. I never would have expected that. We had a buyer back out right after the inspection for no real reason (nothing bad on the inspection), but that is all I have had to deal with.  

Answer 13

You can pull out but all upfront fees are gone As long as you haven’t signed the contract - which you shouldn’t at inspection stage

Comments

@chockablock usually you don’t inspection until after signing a contract. Why would I pay for inspection if I don’t have a contract that my initial offer has been accepted?  

Answer 14

We backed out of a contract once the inspection came back. We lost the inspection but did receive our earnest money back but we responded in the necessary timeframes. The sellers realtor went radio silent so it was pulling teeth but we got it. Check with your realtor they should help.  

Answer 15

Depending on whether inspection comes back with red flags and you may lose your binder. That is my experience with my agents but definitely consult yours.  

Answer 16

In MN contract states earnest money is to be returned

Answer 17

We backed out once because we were not happy with the inspection report. That’s what the inspections for. You will be out the money paid for the inspection

Answer 18

Also, ask for a second opinion after you talk to your realtor. There were some shady things when we bought our home 20 years ago and we found out later that our realtor misinformed us because she wanted the sale. We were young and uneducated about the process and she used that to her advantage. Hopefully your realtor is better than that.  

Answer 19

You need to talk to your agent . You won't get in trouble

Answer 20

When we sold our house last month we basically had to do everything the buyer asked for in order for them not to leave the contract. We put an offer in on a house in 2014 and the inspection came back it needed a beam to make the foundation stable. We did not go forward and only lost the inspection $. I’m glad we did. We bought a different house in the same neighborhood and the 1st had people working on it constantly.  

Answer 21

Talk to you agent. If there are concerns that you have you can get out. We looked at a house and was in the middle of the inspection and the inspector said run don’t walk away from this house. We backed out, got the earnest money back and only lost the amount paid for the inspection. Money well spent because that house was going to be a big headache. Listen to your intuition.  

Answer 22

Check your contract to see what your due diligence period is. We are in the process of buying a home right now. Our due diligence period was only 8 days (per our offer). So we had to have our inspection done and the "fix requests" quickly. It was only during those 8 days we could have walked away without losing our earnest money.  

Answer 23

Talk to YOUR Agent! This is all great advice  HOWEVER, practicing and dealing real estate varies by state. Furthermore, every contract and its terms that are agreed to are different based on what the buyer and seller have agreed to. The terms of your contract and your state laws would govern this. As an Agent in NC, I wish you luck!  

Answer 24

Thank you everyone!  

Answer 25

I agree with talking to your agent and see what you would lose. Then decide if you are willing to lose that money. There are multiple reasons to back out without losing your deposits. We are in an HOA and I flagged a couple items to use later on as an opt out if needed. You just need a solid reason. Buying a house is not something you can easily get out of. If you are uneasy going into it, it will affect all your feelings about the house. And you may never enjoy it. Decide if it is the house itself or just the stress and anxiety of buying any house that is making you feel uneasy.  

Answer 26

In Minnesota our Ernest money came back to us after we withdrew our offer. The house failed in inspection so we said no. But I believe unless you have a contract your good

Answer 27

Yes there is a way to back out of it. Talk to your agent and let them know that you are having second thoughts. You do not want buyers remorse.  

Answer 28

We backed out once but lost our Earnest Deposit ($1500 in this case). It was a hard decision to make as I loved the house but when we took what our payment would be and worked a budget, we knew it would make us “house poor. ” We had been in that spot before and we did not want to be there again, so we walked away.  

Answer 29

It depends on your contract. I’m a Realtor in Louisiana and our contracts state that if a buyer defaults they COULD potentially lose their deposit and the seller could sue for 10% of the purchase price. Talk to your agent and/ or attorney. They will be able to advise you best.  

Comments

And I should add, if you’re still within your inspection period most contracts allow you to cancel and receive your deposit back.  

Answer 30

You will lose deposits

Answer 31

Talk to your realtor about it. There is a period in time when you can lose your earnest money that you paid for.  

Answer 32

You’ll loose any earnest money put down.  

Answer 33

You should have a 3 day right to recision you’ll lose any earnest money.  

Comments

@mohock real estate varies by state. I’m an agent in PA, we do not have a 3 day recision in our contracts here.  

Answer 34

Consult your agent. Too many factors for any of us to know.  

Answer 35

We did it a few years ago. We paid for the inspection but didn’t lose a deposit. I’m not sure if this is always true though. Good luck!