2006-12-14 08:25:20 · 10 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Actually, I offered on a house and was out-bidded by another. I just found out they backed out. Will my offer be considered next?
2006-12-14 09:22:26 · update #1
The seller obviously doesn't get to sell the house to that particular person. :)
2006-12-14 08:28:32 · answer #1 · answered by Me, Myself & I 4 · 0⤊ 1⤋
When a buyer backs out of a contract both the buyer and the seller must sign a release form to fully kill the contract and allow the seller to put the house on the market again. The old buyer may lose their good faith deposit depending upon the circumstances.
If you were the only other buyer bidding on the property, the listing agent will likely call you (or your agent). Usually when you make a bid on a property you put a time limit on it to motivate a quick response from the seller (so that no other buyer can swoop in and snatch it away from you). So, you will likely have to resubmit your offer. Plus, you might want to find out if the seller's disclosure form has changed before you make the new offer (as a result of the previous buyer backing out [perhaps as a result of their inspection]).
2006-12-14 10:40:35 · answer #2 · answered by linkus86 7 · 0⤊ 0⤋
That depends.
If the buyer backs out due to an issue raised in the contingency clauses then they get their earnest money back and everyone moves on.
If the buyer simply gets cold feet, it may be possible to sue for specific performance but that can be rough. Most agreements will stipulate that the seller's damages are limited to the lesser of actual proven damages or the amount of the earnest money.
If the buyer backs out because the seller failed to perform their duties as seller then the buyer may have a claim against the seller for non-performance. At the very least they can usually cancel the contract, take their earnest money and go.
2006-12-14 08:43:28 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 1⤋
It depends on the reason and on what the language of the agreement says. For example, many agreements to purchase have a contingency clause that says the buyer can back out if there are significant flaws uncovered in a home inspection by a qualified inspector, or they can back out if their current home doesn't sell within a certain time period.
If the buyer's reason for backing out is not covered in the agreement, then the buyer forfeits the earnest money and may also open the door to being sued by the seller to force them to close on the house.
2006-12-14 08:33:40 · answer #4 · answered by Anonymous · 1⤊ 1⤋
You will typically lose your earnest money, unless the reason you are backing out was a contingency in your purchase agreement, such as an inspection contingency where the inspection comes back with too many issues.
Most purchase agreements are contingent upon getting financing. Usually they'll put a generic cap on the rate that you'll accept, sometimes not. So you generally can't say "I was offered 9%, I won't buy unless I get a 6% rate".
It's possible they could sue you to try to get you to finish the purchase, but in general that would go nowhere, because no judge is really going to force you to buy a home you don't want.
Without knowing your specific reasons for wanting to back out, it's hard to know for sure what will happen, but most commonly, you just lose your earnest money and the sellers go put their house back on the market.
2006-12-14 08:32:40 · answer #5 · answered by Anonymous · 1⤊ 1⤋
People read the entire question, the poster isn't the one that is backing out.
The answer to the poster is this, now that the seller doesn't have a buyer, the seller will now reevaluate all the bid and pick the one they like and see if they are still interested in purchasing the home.
2006-12-14 11:11:39 · answer #6 · answered by AJ 7 · 2⤊ 0⤋
The seller gets to keep the earnest money that the buyer put down.
2006-12-14 09:16:40 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Why are you backing out? If it is because a contingency wasn't met through no fault of yours then you get the deposit back. If you are just changing your mind you loose the deposit. What does your agent say? They should know all the circumstances. Ask your agent not enough info given here for a good answer.
2006-12-14 08:31:15 · answer #8 · answered by Anonymous · 1⤊ 1⤋
It depends on the seller. They would usually go to the next highest bidder if it still meets their minimum price.
Here is some additional info. Hope this helps.
2006-12-14 11:23:32 · answer #9 · answered by Anonymous · 1⤊ 0⤋
i can guarantee that when a buyer backs out of a home sale............ the seller, the realtor and the loan officer are PISSED!
2006-12-14 23:34:56 · answer #10 · answered by Anonymous · 0⤊ 0⤋