Can You Back Out Of A House Offer? How To Formally Withdraw
Author:
Sarah SharkeyMar 5, 2024
•6-minute read
The home buying process can come with many ups and downs. For some prospective buyers, changing circumstances could mean you want to back out of a house offer. The good news is you can do that. However, in some cases, you might run into financial and legal implications.
Can A Buyer Back Out Of An Accepted Offer?
As a home buyer, you can back out of a home purchase agreement. However, with no contingencies written in the contract, you may face costly consequences such as losing your earnest money deposit.
As a buyer, the ability to back out of an accepted house offer is good news. Even if the home is under contract, you can walk away from the sale. But the potentially negative consequences tend to grow the further along you get in the home buying process.
Commonly Acceptable Reasons Why A Buyer Might Withdraw Their Offer
Buying a home is a highly personal decision. But when a buyer walks away from a sale, the decision usually happens due to one of the following reasons:
- The buyer loses their income and is ineligible for financing.
- The house is appraised for less than the sale price.
- The inspection reveals major issues.
- The buyer can’t sell their own house.
- The house has a title dispute issue.