How do i get out of a contract of new home being built, if my current home has not sold???

Question

My current home hase been on the market for five and no takers, Closing is apporaching fast in july, and I dont want to lose both houses

Answer 1

I agree with the first girl, if there is no contingency in the contract stating you will proceed with the purchase only if your current home sells, then you might have to take a bit more drastic action. If worse come to worse, and it probably will, you might lose whatever money you have put down on it. My advice is to hurry and talk things over with the agent or a Real Estate Lawyer if you don't have an agent! Do it ASAP!

Answer 2

Ask the builder if he would take the old house as equal to cash at a discounted value. (Like about 75 cents to the dollar.)

Next, de-clutter the house...strip it of all your possessions except the basic furniture and some artwork. Talk to a decorator about helping you make the house saleable. You can also watch one of a dozen or so TV shows that do just this sort of thing (several from UK, some from US). If you and the family don't have time to keep the house spotless, spend about $50 a week and have a cleaning lady come in once a week (and schedule all showings for later that day).

As for getting out of a contract...depending on how it was worded, you could have to pay penaties in excess of the value of the job! Regardless, if you do choose to go this route, your Credit Rating *may* take a big hit.

One final option, some real estate agencies will sign paper stating that if they can't sell the home in "X" time period, they will purchase the house at market value. However, if you're in a buyer's market right now...you'll have an even harder time doing that.

If that doesn't work, once you move out, put it on the market as a rental property. You can even talk to your tenants about a rent-to-own scheme, which will enable you to charge more rent for a 10-15 year purchase...essemtially, once their rent payments make it to about 150% of the market value of the property, they become the official owners of the property.

In any case, consult a property lawyer...soon.

Answer 3

I don't think you will lose your home. If you have a contract, I am sure you had to to put down some money that he can keep. If you have a contingency offer on the house, he will have to refund your earnest money if you haven't sold your house. If you have sold your house and decide you don't want the other house, then he can keep your money.
On a contingency offer the house will remain on the market and if someone else comes up with the money to close you will have so many days to come forward with the money and if you can't, the other person gets the house.Once we didn't get a house for this reason,we just put our money on one a couple doors over--- they were townhomes and under construction. Good Luck!!!

Answer 4

I hope the contract you have to purchase is subject to you selling your current home. If not someone made a BIG error. Hope it works out. You may end up loosing your deposit. Sorry. Do you have a Realtor? If so your probably OK, only a moron of an agent would not put this contingency in.
RE Agent,
Remax

Answer 5

Technically you cannot get out of the contract unless you added a subject to cause on it, ie., "Subject to the sale of my house."

There are a few things you should do. 1. Check and see if you have priced your house too high. If it does, reduce the asking price. 2. Keep both houses and rent out one. 3. Get a lawyer to look into the contract and see if there are any loopholes.

Good luck.

Answer 6

That depends. Did you include a contingency in the offer of your new home that your current home must sell first? Go through your contract with a real estate professional.