First time Home buyer here in Missouri. I think I might have made a big mistake and need some opinions on what I should do. I have been looking at homes over the past two years. Yesterday I found one that I liked and put a contract on it without fully looking at the neighborhood at night. I went by myself to tour it and I shouldn't have. I fell in love with the house but the neighborhood is pretty rundown and it took me looking with my Mother to finally realize this. The next door neighbor has a bunch of garbage in the front yard with a busted up Honda CRV with expired tags in the front yard, and the streets are falling apart. It is less than a mile from the railroad tracks and is right behind a high school track and field something that I am not fond of due to the noise.
My realitor called me today and said that there were four other offers on the house but they chose mine and he stated that I got it because he " Knew" the realtor that was selling it and had personal professional connections with her. I made a mistake and signed the contract, Currently it is still in the first stages and I haven't put any Earnest money down on the property yet. I called my realtor when I decided to " Back out" he was extremely upset and asked why I had a change of heart, I told him that I just changed my mind. He further stated that since I signed the contract only way that I can get out of it potentially is to get an whole home inspection done and if they find something that I am not willing to fix or repair that I can back out of the contract. I spent $450 on just a home inspection to come and look at the property.
On a scale from 1-10 How bad am I screwed or run the risk of getting sued by the seller? It has been keeping me up at night and is causing me to have panic attacks.
Did I make a huge mistake signing a contract?
byu/No-Distribution-2875 inRealEstate
Posted by No-Distribution-2875
11 Comments
Not a lawyer or a realtor but I doubt if the contract is valid until the earnest money deposit is made. And if you haven’t done that, you’re probably in luck.
Like a 2? This happens all the time. How much was earnest money?
You can back out of the contract. Don’t put down any earnest money. You’re fine. Be assertive with your realtor
I’m confused. What did you spend $450 on? A pre-offer inspection?
I don’t know rules and regs in your MLS but if you don’t give earnest money in the time specified in the contract then you won’t have a valid contract. Note, though, that in some states, earnest money is not necessary for the contract to be valid.
The agent is informing you of what could happen if the seller chooses to pursue it. Most won’t, but your agent does have to inform you of the law.
Send an email tonight telling your agent you wish to cancel.
READ YOUR CONTRACT!
Usually, the home inspection contingency says that you can back out for any reason after having the inspection – even if they don’t refuse any demands to fix something. You don’t have to make any requests – you just say “based on the inspection, I am no longer interested in buying the home”.
But again, you need to read your contract and see what it says.
And, if the contract says that you can back out after a home inspection, then most sellers aren’t going to actually make you jump through that hoop – they don’t want to have to wait a week to get under contract with someone else – they will let you out with no penalty.
You have to remember your realtor loses a commission if you back out – so they aren’t necessarily giving you unbiased advice.
But if you make it clear to your realtor, I am backing out, period, they shouldn’t really want to jump through the hoop of getting an inspection either because it’s more time they have to spend on a sale they know isn’t happening.
Once you get out of the contract , wait to have this conversation until contract cancellation is fully signed and you have a copy, fire your agent.
No money no deal. They cannot make you buy a house. Walk away. Fire the realtor too.
The sellers aren’t gonna sue you. After all they have 4 other offers so nothing to worry about.
Don’t put the earnest money down and seriously consider a new realtor. Yours should never pressure you. Lots do and that’s when it’s time for a new one
You simply don’t proceed, it’s fine.
You don’t have to buy it. Tell your realtor that once you seen the neighborhood at night that you can’t live there and you changed your mind about buying it.
Is it the best you’ve seen in your price range? A Honda project car could mean many things. Beggars can’t be choosers.