Profile picture for pilar martinez20

Backing out from buying a home

Can we back out from buying a home after inspection and appraisal? The house is selling for $690,000 which is expensive for us. The house is located in an area in bellflower that is not the nicest. We were hoping that the appraisal will come less then the selling price but it came in at selling price, $690,000. We think that it is worth way less. Can we change our mind about this house?
  • August 25 2014 - Bellflower
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (4)

Dear Pilar,
Hi there, you do have contingencies during the contract period  of 17 days when you can cancel the purchase. I hope you are working with a good "Buyer Agent" who can advise you on the contract and your rights.
  • August 28 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Rebecca Marvel
If you are within your contingency period for inspection you can cancel with no penalty. California RPA default inspection period is 17 days from the date of acceptance but you need to review your contract and any counter offers and/or addenda to make certain that a shorter inspection period wasn't agreed to.

Your deal is also probably contingent upon the home appraising for the sales price which you state the house came in at value so that contingency is no longer an issue.

Your deal is also probably contingent upon your being able to obtain financing for the house. Have you received full loan approval yet?

If your inspection and loan contingencies have expired and you still wish to cancel you may lose all or part of your earnest money deposit. That would be the cost of changing your mind.

Part of the "due diligence" is checking out the neighborhood BEFORE you place an offer.

But the seller may have mercy on you and decide to refund your entire deposit.

  • August 25 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Have you removed all contingencies? If not, you can probably back out and you should not lose your deposit, It does seem strange that you did not know the home was too expensive for you plus presumably, you had no problem with living in that part of the city when you made your offer. It sounds like a classic case of "Buyer Remorse".

One thing that may put your deposit at risk is the implied "Good Faith" when you got in to contract. If you were backing out because you didn't like something in the inspections or disclosures, or if you couldn't qualify for the home, that would be something else. It would be a good idea to talk to an attorney before just cancelling the contract.
  • August 25 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Just curious, why did you put in an offer on a house that is too expensive? Were you upfront with your Realtor as to your comfort level?

As for being able to back out, you need to read your contract VERY carefully. At the very minimum, you will lose your deposit. The seller will be extremely angry as you may have cost him another deal and thousands of dollars. He may decide to talk to an attorney and look for other avenues to sue you. If you read through some of the advice posts you will quickly get an idea of what you will be dealing with if you decide to back out.
  • August 25 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.