Backing out of a real estate deal
I recently received a message from a reader that brought up a lot of thoughtful questions. The buyer was in the middle of a condo purchase. They had not received key documents from the seller, including the condo questionnaire or reserve study, and were now asking if they could get their deposit back because they were thinking about backing out of a real estate deal. The tone of the message felt urgent, but also a little unsettled.
These situations are coming up more and more, and they raise an important question for anyone thinking about backing out of a real estate deal.
Cold feet or valid concern
The first question I usually ask a buyer in this situation is simple. Are you experiencing cold feet or is there a real reason for concern?
When someone starts saying they need more time and that they are not comfortable moving forward, it often sounds like uncertainty more than anything else. Sometimes even additional time does not resolve that feeling. But if there are legitimate reasons for concern, that is a different conversation entirely.
What should you expect from the seller
In the case of a condo purchase, there are certain documents you absolutely should receive. These include:
- Current and prior year budgets
- A recent balance sheet
- The condo questionnaire
- A reserve study or reserve fund information
These documents are necessary to understand the financial health of the building and/or community. If you have not received them, you are not in a position to make an informed decision. It is reasonable to request time to review them once they are delivered. This can be done by asking your real estate agent to submit a simple addendum to the contract giving you 5 to 7 business days from the time you receive the documents.
That protects you while still honoring the contract.
The inspection issue
This reader also expressed dissatisfaction with the inspection. But they did not specify what the concern was. Unless something major was uncovered, the inspection should be a point of negotiation, not an immediate reason to walk away. If something serious came up, a good real estate agent can help you ask for repairs or a credit.
This is why it is so important to talk to your agent before making a final decision. They can walk you through your options and help you understand what is reasonable and what is not.
Get clear on your motivation
Before backing out of a real estate deal, I encourage every buyer to pause and ask themselves one thing: why did you make the offer in the first place?
Was it the location? The price? The layout? The neighborhood? Go back to your original wishlist and see how the property matches up. Then, make three lists:
- Your original wishlist
- The pros of the property
- The cons you are now concerned about
Compare them. See if you are reacting to anxiety or if the home truly no longer makes sense for your needs.
Fear can cloud good judgment
Buying real estate is stressful. It is emotional, expensive, and full of unknowns. But backing out of a real estate deal should be based on facts, not fear.
If the property still checks most of your boxes and the issues you are facing are procedural, they can often be solved. Talk to your real estate agent. Have them request the documents you need and ask for time to review them. If the inspection revealed issues, decide if they are deal-breakers or negotiation points.
Sometimes a short pause and a calm conversation can make all the difference.
Talk to a real estate agent who can guide you
If you are facing a situation like this, or just feeling overwhelmed by the process, you do not have to navigate it alone. A trusted agent can help you sort through the details, request the right documents, and negotiate on your behalf.
And if you need help finding a real estate agent in your market, I am happy to connect you.
