How Homebuyers Can Exit Contracts Without Losing Money

By The Goodman Taylor Team

We want to help you live the best life you can, one where you find your dream home, move to the perfect location, or receive a life-changing deal. We’ve done this for countless clients in the past, and we’d love to do it for you too. After all, there’s a reason why we’re one of the most trusted real estate teams in our area.

As a buyer, how can you back out of a home purchase contract without losing your earnest money? One of the roles that I take very seriously in my profession is protecting your money. As a fiduciary, I prioritize your financial interests before my own, which means I know exactly how to get you out of a contract without losing your earnest money.

We have several different clauses and contingencies in our contracts that are intended to protect you as a buyer. If we go under contract and you decide that something about the property or its location isn’t right for you, or you run into issues in getting a loan, we can use those reasons to get you out of your contract and have your earnest money refunded to you as long as it’s within our inspection period. Here are some examples:

• Unexpected issues. When you discover unexpected issues that you can’t live with, such as unpleasant smells from nearby farms with livestock, or when you find out that the travel time to your workplace is longer than you anticipated, you can back out of the contract safely.

• Appraisal contingency. An appraisal contingency means that if the home doesn’t appraise for the purchase price and we can’t come to an agreement with the seller, you can back out of the contract and get your earnest money refunded.

• Loan contingency. If you can no longer qualify for your loan for reasons that aren’t your fault, we can use the loan contingency to get you out of the contract. This includes situations such as losing your job, which impacts your loan approval. In such cases, you can back out of the contract without losing any money.

Protecting your money is one of the most important reasons to hire a realtor. I take this responsibility very seriously and work hard to ensure that your financial interests are safeguarded throughout the home-buying process. If you have any questions, I will be more than happy to help you out. Give me a call at 480-382-8093. I look forward to connecting with you!