Get out of Contract to sell (RE market, contingency, appraisal, 1%)

[rockie8883]

To make a long story short, here is the deal. We sold our house. That was amazing! However we can't find any house to move in to. (We are buying) Our relator showed us several homes in the past month but nothing has struck us as "that is what we want". Can we get out of the contract? The inspection is done, the appraisal is done, however I don't think the house will appraise for the amount of the loan. If not, is that a possible way to get out of selling? I feel my relator is "pushing" or forcing me to settle on houses that I really don't like!

Thank you for any input!!!!!

sressed

[austin-steve]

Originally Posted by rockie8883

To make a long story short, here is the deal. We sold our house. That was amazing! However we can't find any house to move in to. (We are buying) Our relator showed us several homes in the past month but nothing has struck us as "that is what we want". Can we get out of the contract? The inspection is done, the appraisal is done, however I don't think the house will appraise for the amount of the loan. If not, is that a possible way to get out of selling? I feel my relator is "pushing" or forcing me to settle on houses that I really don't like!

Thank you for any input!!!!!

sressed

No, you can't get out of your agreement.

Why do you think that your buyer should suffer the consequences of your indecisiveness? Do you think they might have made plans and spent money in purchasing your home and making plans to move?

You've entered into an agreement. Are you the kind of person who keeps your agreements? If so, your question is the wrong one. You should be looking for temporary housing so that you alone accept responsibility for your "seller's remorse". Leave the buyer out of it and move on with your next best option.

Steve

[Bill Keegan]

Originally Posted by rockie8883

To make a long story short, here is the deal. We sold our house. That was amazing! However we can't find any house to move in to. (We are buying) Our relator showed us several homes in the past month but nothing has struck us as "that is what we want". Can we get out of the contract? The inspection is done, the appraisal is done, however I don't think the house will appraise for the amount of the loan. If not, is that a possible way to get out of selling? I feel my relator is "pushing" or forcing me to settle on houses that I really don't like!

Thank you for any input!!!!!

sressed

You can always get out of a contract. It's rare that anyone can force you to sell your house, (though, it can happen.) The real question is, what are the REPURCUSSIONS of backing out of this contract. Remember, the buyer has put a lot of time, effort, and it sounds like money, into the process, and is ready to purchase your house. By backing out of the contract, you are creating a HUGE disturbance to their lives & plans. Now, you may be ok with that, and I'm not being judgemental about it, but it is a fact. And if you do that to them, you have to be prepared for whatever consequences there will be. Those consequences will differ based on where you are and the language in the contract you used. The best thing to do would be to ask your attorney and or your Realtor. I would expect that the buyers will demand repayment of all the money they have spent on things like inspections & reports, deposits to vendors like the moving company. Possibly bank fees like mortgage rate lock fees & appraisal, etc. In addition, they and their attorney might feel that they are due some compensation for the chunk of their time that was wasted, and the damages associated with other possible homes no longer being available to them. In the most extreme case, they might sue for "specific performance". Meaning they will ask a judge to compel you to sell the house to them under the terms of the signed contract.

Again, talk to your attorney. Real estate is LOCAL, and only a LOCAL real estate attorney is properly equipped to sort this out for you.

As to your Realtor "pushing" a house on you; that Realtor believes you are going to abide by the contract you signed. He has no legal choice but to assume that. Therefore, he wants to find you a house into which you can move. Is he pushing a house despite there being others you want to consider? Or is he simply pointing out to you that the options are fairly limited at this point, and asking you to make a decision?

[rockie8883]

You know what I was asking for advise so I knew my option. You don't even know the whole story. As far as the buyer suffering? I am the one who is paying the 6K for them to get in the house! Moderator cut: personal insults

[austin-steve]

Originally Posted by rockie8883

You know what I was asking for advise so I knew my option.

You're welcome. You've stumbled into a forum of fairly ethical and straight up people who, for the most part, feel like people should stick to agreements and do the right thing. You're asking if you can pull the rug out from under a committed buyer for frivolous personal reasons, which would in fact be selfish and a breach of your sales contract. You won't find much support or help here, in my opinion.

Yes, you can simply refuse to close, and Bill addressed the possible consequences of doing so in his reply. Yes, there may be a technicality that an attorney can find. Those questions can't be answered here, so we are left with the higher level "big picture" responses, which is what you've received.

Best of luck to you.

[kevcrawford]

If you come on asking for advice, be ready for it. The above posters are correct. YOU decided to sell your home, and now that it sold, you need to abide by that contract. Should you back out of the contract, don't just expect a slap on the wrist. You're putting yourself in line for a lawsuit. And if it were my client, I'd push them to sue for performance on that contract.

As far as you paying $6k in closing costs, it's obviously not that big a deal, as you agreed to it initially, so that shoots that argument down. And most likely you raised the price a bit to allow them to finance it anyway. Even if you didn't, you still agreed to it.

Just find a rental for 6 months until you find the right house. When you put the house on the market, you intended to sell, so you should have planned ahead.

[middle-aged mom]

Seller's remorse???

If the house does not appraise, you probably have an out. Let's flip this around. What if you had found the perfect home and your current home did not appraise for what the buyer's needed?

If the appraisal is not an issue, you are contractually bound to sell or eat the consequences, which will minimally include paying the broker commission and covering all out of pocket costs the buyer's incurred including but not limited to inspection and appraisal.

The buyers may go for lost opportunity costs, too. The language within your contract and state laws will govern the outcome.

Please contact your attorney, now.

[bigtrees]

Most contracts have an option to cancel and the contract will set forth the terms of cancellation. Typically a person pays the other party to get out of the contract. I think the amount of earnest money would be a good starting point for negotiation (typicall 1% of the purchase price).

With that said, it sounds like you have a case of sellers remorse. I'm assuming you didn't write a contingency clause into your contract? Since it sounds like you are particular about the houses, I'd recommend adding this language in the future.

[GeminiGal]

Very odd situation. Most, especially in the current RE market, are thrilled to have sold their home and have their housing options / plans in place. Rent and be happy that you have plenty of time to decide on your next housing purchase.

[tamitrail]

Go through with the sale and rent for a while until you find a new house. You are one of the lucky ones who found a buyer. You may not be so lucky again. Your new house will come along.