Help! I need to back out of a sales contract.

[Hanan K.]

An agent approached me about a client who is interested in my primary residence. There is a home a few doors down that just went on the market for 999K.  I hired an agent to represent me in the sale of my home and asked that she proceed with all correspondence with buyers agent  I explained to her that I would not agree to any purchase until I know what the comp down the street is under contract fo. The reason for this is that we live in a very unique neighborhood with restored mid century modern flat roof homes. Our street is tree lined and stands out from most streets in the area.

the agent presented an offer to me and I explained that I would not accept an offer until we knew what the comp was on the house down the street. She then proceeded to tell me that it was under contract for 1,050,000. She said she received that Information from the listing agent. 

I used this Critical Information to make our decision and we accepted an offer at 900K since the other house had a lot more upgrades. 

Come to find out the information she provided was completely false and it actually closed for 1,130,000. 

I now feel that she was negligent with the comp she provided and my entire decision making process was based on this. 

What can I do? I want to cancel the contract. I now know I am selling for severely under market value as even though the other home has more upgrades, mine is much larger, same style and completely updated. 

Is there any way out based on my agents negligence? 

[Charlie MacPherson]

@Hanan K.  A lesson I learned over the years is to collect all of the facts before going nuclear.  It could well be that the deal on the other house fell apart and the higher price was from a different buyer.  In other words, your agent may have been thorough and truthful.

Don't forget that your interests and those of your agent are aligned.  The higher the sale price for your home, the more commission your agent makes.  

For the sake of discussion, let's assume that your agent pulled that number out of thin air.  The fact remains that you accepted an offer.  It's a contract and you signed it, so unless there are terms in the contract that allow you to pull out under particular circumstances, there's no way to cancel it unilaterally.

You could go to court and argue that's the contract is void, arguing that it was unconscionable, a mistake, that the parties were either misidentified or incompetent, etc.  https://www.upcounsel.com/how-...

That will likely take years to get through court and rack up 5 figures in legal fees.

You could file a claim against the agent's E&O policy, but you will have to prove your numbers and damages. In what sounds like a very hot market, that's going to be extremely difficult. True market value of a property is what a willing buyer and seller agree to and that's a volatile, moving target.

If you're determined to follow through, gather your evidence and talk with an attorney (and I'm not one). 

My prediction is your case will have a very low chance of success and a very high chance of frightening legal bills.