Few things are as frustrating as that — it leaves you (the seller) in a financially and personally precarious position.
Here’s how you can recover!
First of all, remember that a home purchase is a legally binding contract. So, if a buyer backs out without a legitimate reason, it may indicate a breach of contract. This gives the seller some recourse and can create a much better negotiating position.
1. Review the contract
Next, you should thoroughly review the contract to see if there are any clauses that would allow the buyer to back out without penalty. If so, you may be out of luck. However, if there are no such clauses, it may be possible to take legal action against the buyer.
2. Claim the earnest money
If the buyer backs out after the contract has been signed, you may be entitled to the earnest money. This is money that the buyer puts down to show that they are serious about the purchase. It is usually held in escrow by the real estate firm, title company, or lawyer and can be used to cover the seller’s costs if the buyer backs out.
3. Negotiate with the buyer
If the buyer does have a legitimate reason for backing out, it may be possible to negotiate with them to find a solution that works for both parties. For example, you could agree to a lower selling price or a later closing date.
4. Take legal action
If the buyer still refuses to honor the contract, you might consider taking legal action against them. This is usually a last resort, but it is an option if you feel like there is no other choice.
5. Sell your house fast for cash
Don’t restart the entire process. Give us a call at 865-686-5494 and we can make you a fair cash offer within 48 hours. We can even close in as little as two weeks. You pick the closing date and we pay all closing costs!