3 Ways to Back out of a Home Purchase Without Being a Jerk

Bay Area Real Estate Podcast with Greg McDaniels

Is it ever okay to back out of a deal? Yes. Today, I’ll highlight three examples.

Looking to buy a Bay Area Home? Search all Bay Area homes for sale. Selling Your Bay Area Home? Use our home evaluation tool.

Backing out of a home purchase can make you seem like a big jerk, but it doesn’t have to. There are three ways you can get out of a deal without coming off as rude:

1. If you’re unhappy with the physical inspection. No matter how excited you were to purchase a home in the beginning, an unsavory inspection report can be a sure way to burst that bubble. If a home just isn’t right for you, or has problems you just can’t look past, it’s often best to walk away.

2. If your purchase is contingent upon the sale of your current home. If your current home doesn’t go under contract within the designated time frame, you have no obligation to go through with the purchase. This contingency can act as your “Get Out of Jail Free” card, and save you from juggling two mortgages at once.

If a home just isn’t right for you, or has problems you just can’t look past, it’s often best to walk away.

3. If the homeowners association documents raise a red flag. When you purchase a home in a homeowners association (or HOA), you’ll receive a huge stack of documents outlining the rules, regulations, and fees that will apply to you if you choose to go through with the purchase. We want to see what kind of finances the HOA has, how the board is, what the facility is like and if it will need any maintenance down the road, and also if you as a homeowner will have to put up a large chunk of money to add to reserves if there is a special assessment that is called. I highly recommend that you review these documents carefully before committing yourself to living in an HOA.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.