So you’ve finally got your home under contract and off the market, but then the buyer backs out. What do you do?We’ve been seeing a ton of properties (approximately one in five) come back on the market right after they go under contract. If I had to pinpoint one thing that’s causing this, it’s buyer’s remorse.
Buyer’s remorse can happen in a few different ways. Some buyers just get wrapped up in this hectic market and once they finally get a house under contract, they realize it’s not the right house or right deal for them.
Another thing we’re seeing is buyers back out of the deal after the inspection period. Buyers have the attitude that they’re paying so much to get a home that they don’t have the money to do repairs. They don’t want to ask the seller to do them either, so they just back out.
One thing I’ve started doing is negotiating a backup offer at the same time we’re negotiating the primary offer. We accept the one we like the best and negotiate a backup contract at the same time in case the first buyer backs out of the deal. That way if the first buyer ops out, you have the opportunity to immediately pick up where you left off with another buyer. You don’t lose marketing momentum, don’t have to deal with the hassle of putting everything on the market, etc.
The good thing about backup offers is that neither party has to perform until the first buyer backs out. This is another way to make sure a deal closes and gives you a lot of peace of mind as a home seller.
If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.