Backing out after under contract

[Kayla Palmieri]

Hi! Me and my dad (contractor) are looking to get into house flipping. We took a course recently and one of the main points the guy stressed was to just "get the house under contract" asap and then do the inspections and any other due diligence after. Things are selling SO incredibly fast where I live so this makes sense. The only thing we are a bit confused on is he said you can simply "back out" of the deal if you change our mind...but how would you just "back out" of the contract if there is nothing actually wrong with the home? Would you lose a large chunk of money? The instructor was not very helpful so I figured I would ask here!

[Ray Hage]

Quote from @Kayla Palmieri:

Hi! Me and my dad (contractor) are looking to get into house flipping. We took a course recently and one of the main points the guy stressed was to just "get the house under contract" asap and then do the inspections and any other due diligence after. Things are selling SO incredibly fast where I live so this makes sense. The only thing we are a bit confused on is he said you can simply "back out" of the deal if you change our mind...but how would you just "back out" of the contract if there is nothing actually wrong with the home? Would you lose a large chunk of money? The instructor was not very helpful so I figured I would ask here!

 I generally stay away from these courses as they don't usually help much. Anyhow, I am both an investor and an agent. I put several contingencies in my contracts to protect my buyers. First, you have the inspection period (try to get at least 7 days). Then have a financing and insurance contingencies. The more avenues you have to get out of a bad property, the better.