Home Buying in 33415>Question Details

Americo Perez, Home Buyer in West Palm Beach, FL

After I have placed an offer and paid for an appraisal, what happens if I find another property that I like?

Asked by Americo Perez, West Palm Beach, FL Mon Mar 2, 2009

I am already a couple of months into the process. I gave a down payment. Got qualified and approved. Paid the appraisal. Signed the sales contract... So what if I change my mind because I found another property that I like? Is it to late to backout? Obviously I will loose the appraisal. But do I also loose the downpayment? Will the realtor be so angry that they will refuse to represent me on another listing?

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Talk to your agent and express your concerns honestly. Ask the agent to review the contract to see what the remedies for breach are. He or she may refer you to an attorney.
An experienced agent doesn't want to see you make a mistake and should understand.
Still, when you enter into a contract, it is not to be taken lightly.
If you feel your agent is 'vested' in you completing a sale you don't want to, speak to their broker.
Considering that you are months into your transaction, I would suspect you may be forefeiting your deposit.
~
We sold a house in Florida a while back. One of our buyers who cancelled escrow on us, we learned from their agent, had bailed on 11 other purchases prior to that one. She lost 11 earnest deposits.
I wonder if she ever bought a house? :)
1 vote Thank Flag Link Mon Mar 2, 2009
You signed a contact. You have caused the property to be off of the market for a "couple of months," which prevented the Seller from marketing the property to others. I am assuming that you are well past the inspection stage. The Seller & your agent are just waiting the for the closing date. You can walk away, but the Seller can sue you for damages once the property has been sold to another Buyer. Money held in escrow will probably stay where it is, because the Seller will not sign a release. You need to talk to your Realtor about your decision. Your Realtor has already done a lot of work. If you signed a Buyer's Agreement, you may already owe your Realtor compensation for his/her services. You may want to consult with an Attorney who handles residential real estate matters before you walk away.

Pat Pribisko, J.D., Realtor
0 votes Thank Flag Link Sun Sep 12, 2010
Most contracts in Florida are 'As-Is; contracts with right to inspect. If you are not beyond the inspection period you may opt out during the inspection period and should be able to get your escrow deposit back when your Realtor issues a 'cancellation of contract'.
0 votes Thank Flag Link Sun Sep 12, 2010
Fm Americo... Hey John, my mommy says it doesn't hurt to ask. lol Besides, it is the typical buyer's remorse kicking in. At the moment there are lots of foreclosed homes to pick from. So, I found a few listings that look great and got tempted. Even though prices are still going down and will continue to fall all of 2009, I notice that the number of home purchases is on the uprise in Palm Beach County. I read it somewhere. Plus I noticed that the total number of foreclosed homes available at any one time has been steady (not increased in the past few months). That triggered me to buy. Has supply and demand levelled off? New home development has decreased dramatically. Thank God. That run-away train left us with more houses than there are families. Anyway, all this amounts to good news for yours truly. I am the lucky single guy that is buying a 5/3 for less than 100k a few minutes from downtowm Palm Beach with 3.5% down and no closing costs. With more people buying out that pool of foreclosed homes, eventually the supply of cheap houses will dwindle, people will start a bidding war, and the prices once again will start to climb. :-)
0 votes Thank Flag Link Mon Mar 2, 2009
Americo
You need to discuss this with your Realtor.

The answer to a "Will I loose the downpayment" question depends on where you are in the purchase process.

The bottom line is that you are making a large investment, so buy smart.

Don't buy a property that you don't want to buy. And read your contracts, know the timelines for release of contingencies.

Good luck.
0 votes Thank Flag Link Mon Mar 2, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
if there are no contingencies remaining then you may lose your deposit. I would contact a real estate attorney to discuss this with them. If you found the property with the agent, then you should also discuss with that agent. They should be able to help you - and transitioning them from one to the other property would at least allow them to capture the commission...

if you are with another agent, then they may be upset - and it may be their right to claim a commission from your deposits.

again - ask a Real Estate attorney
0 votes Thank Flag Link Mon Mar 2, 2009
YOU MUST HAVE LIKED THE FIRST PROPETY BUY BOTH
0 votes Thank Flag Link Mon Mar 2, 2009
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