Just because a seller has accepted your offer it doesn’t mean that it is a done deal. You are not legally bound until there is a fully signed contract. You should know that even though a contract is out that it is perfectly legal for a seller to send out multiple contracts! This can be so frustrating! On the flip side, you can decide to walk away for any reason during this period of time.
Here are four reasons when you should walk away from the deal.
1. You think that you are overpaying. You got involved in a bidding war and ended up making an offer that ” just feels a little too high” Winning the bid motivate you to overpay. You now have time to reconsider whether you really want to purchase the property or not. That is why sellers’ brokers tell the others to just hang on in case the contract doesn’t get signed. There is even a bigger reason to walk away in this situation if you are going to obtain a mortgage. The bank won’t lend to you. If you didn’t sign a mortgage contingency then you would forfeit your contract deposit.
2. An assessment pops up during your attorney’s due diligence. Your attorney discovers that the building has a low reserve fund, a major project being scheduled and you could be slammed with a large assessment after closing. Even if you got a ” good deal” on the price it is better to pay a higher price and buy in a building with strong financials and lower monthly costs.
3. If you are buying an apartment in a new development or a top floor or ground floor unit it is wise to hire a building inspector who will look out for leaks and Amy structural issues. The inspector will look for floors that buckle, window that don’t open and close correctly and electrical wiring issues. If the inspector comes back with a lot of red flags you should walk away from the deal.
4. You may find another apartment that you like better while in contract negotiations. You are within your rights to buy it. Keep in mind that walking away from your deal and entering into making an offer on the apartment that you like better isn’t without risks. If you take too much time before signing the contract on the first one and you don’t end up getting the second one you may end up losing one or both.
Are you looking for help in selling your home? Contact me for a free evaluation.