20k to back out of agreement

[Tyler England]

Hey everyone I have an interesting situation. I recently placed an offer on my 2nd 3 family and I was planning on moving into it since it has a really nice 4 bedroom unit. The offer was accepted which was great news and I’ve since gotten everything in motion for the closing date on June 28th.

The interesting part is, I just got off the phone with my agent and he said there’s another interested buyer. They want to give me 20k in cash to back away from the deal and they also plan to pay both agents their commissions so they don’t miss out on the work they put in. Would I be crazy to turn this guy down? It really makes me think I found a good investment property and a place I could call home for the next couple of years.

The appraisal is set for tomorrow so we’ll see what they say it’s worth but I’m buying it for 420k.

Has anyone heard of this before? All the people I use to seek advice have never heard of this situation before.

Any advice would be great!

[Taylor L.]

Look at the numbers. A cool $20k to buy out your contract isn't bad, plus you have absolutely zero risk in the deal at that point. 

How much do you realistically think you'll make on the property? Being mindful not to inflate the numbers. The other guy could be overpaying, or you could have gotten a fantastic deal