Walking Away from a DFW Real Estate Closing
Walking away from a DFW real estate closing happens more often during a buyer’s market than in a seller’s market. In a buyer’s market, when inventory is high and prices are soft, some buyers become frightened and are afraid of further price declines and aren’t comfortable because none of the people they know are buying homes. Their fear starts begins to seep in immediately after their purchase offer is accepted and their fear increases from there. By the time closing comes around they are in full panic. Sellers Who Walk Away From ClosingA seller walking away from closing is rare. When sellers feel “seller remorse” is typically right after the offer presentation, when the reality of selling their home sets in. Other than the remorse, if the terms and conditions of the sale are adhered to the seller will rarely walk away from their closing. Why Home Buyers Walk Away From ClosingPurchase offers typically contain contingencies that must be removed within a prescribed period of time. If I buyer decides to walk away from the purchase and cancel the contract the best time to do so is during one of the contingency periods. If a home buyer walks away prior to closing they often do so for the following reasons: · Found another home.
Even though a buyer has signed a contract to buy a certain house, they may continue to look at other homes for sale. If another home they find turns into their dream home, the next thing you know that are backing out of the first contract and signing a contract for their “new” home. · They Got Cold feet.
Sometimes, the initial buyer’s remorse that confronts a first time home buyer doesn't dissipate but gets stronger the closer they get to closing. · Turned down for a mortgage
Even though the buyer has a mortgage pre-approval letter it doesn’t necessarily mean the lender will actually give the buyers a mortgage. After the loan contingencies are removed, buyers could face mortgage underwriting stipulations that they cannot perform. · Change in their lifestyle.
An unexpected death, job transfers, a sudden pay cut or an unplanned divorce, any of these situations can cause, or force, buyers to change their minds about following through with closing. · Repairs. If a buyer negotiated certain repairs to the property and they are not completed or done correctly, prior to closing then many buyers under those circumstances would walk away.Repercussions - Walking Away From ClosingIf a buyer walks away from the purchase and their contingencies have expired their earnest money deposit will be at risk. Many contracts have a liquidated damages clause in the event of default which will direct the deposit to be released to the seller. The amounts of earnest money deposits are negotiable and any amount is legal. The higher the earnest money deposit the less likely the buyer will walk away from a closing. If you are contracted to purchase a Dallas foreclosure home the deposit will either go to the bank or to HUD. When purchasing a home in the DFW real estate market or the Plano real estate market it is always a good idea to retain a profession Realtor to advise you on these types of issues. This also hold true if purchasing a Dallas FSBO home.
Even though a buyer has signed a contract to buy a certain house, they may continue to look at other homes for sale. If another home they find turns into their dream home, the next thing you know that are backing out of the first contract and signing a contract for their “new” home. · They Got Cold feet.
Sometimes, the initial buyer’s remorse that confronts a first time home buyer doesn't dissipate but gets stronger the closer they get to closing. · Turned down for a mortgage
Even though the buyer has a mortgage pre-approval letter it doesn’t necessarily mean the lender will actually give the buyers a mortgage. After the loan contingencies are removed, buyers could face mortgage underwriting stipulations that they cannot perform. · Change in their lifestyle.
An unexpected death, job transfers, a sudden pay cut or an unplanned divorce, any of these situations can cause, or force, buyers to change their minds about following through with closing. · Repairs. If a buyer negotiated certain repairs to the property and they are not completed or done correctly, prior to closing then many buyers under those circumstances would walk away.Repercussions - Walking Away From ClosingIf a buyer walks away from the purchase and their contingencies have expired their earnest money deposit will be at risk. Many contracts have a liquidated damages clause in the event of default which will direct the deposit to be released to the seller. The amounts of earnest money deposits are negotiable and any amount is legal. The higher the earnest money deposit the less likely the buyer will walk away from a closing. If you are contracted to purchase a Dallas foreclosure home the deposit will either go to the bank or to HUD. When purchasing a home in the DFW real estate market or the Plano real estate market it is always a good idea to retain a profession Realtor to advise you on these types of issues. This also hold true if purchasing a Dallas FSBO home.
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