It can be incredibly frustrating when a buyer backs out of a deal at closing. When this occurs, emotions can run high, and it is important to know what steps to take to ensure the issue is dealt with properly. A failed deal does not have to cause a lot of distress, and you may even be able to talk the buyer out of their decision, either through convincing them the deal is worth taking or presenting them with legal reasons why the deal is final. The following is a step-by-step process on how to handle a buyer who backs out at closing.
Determine The Reason
The very first thing to do when a buyer gives his intentions to not fulfill the contract and backs out at the last moment is to determine the reason. The buyer must have a valid reason for not fulfilling the agreement. In real estate, these valid reasons are what is referred to as contractual contingencies. While each sale may be different, the most common contingencies include a failed home inspection or an inability of the buyer to obtain financing. In some instances, such as a failed home inspection, arrangements can be made to satisfy the buyer and keep the deal alive.
Contact Backup Options
If the contract does fall through and the buyer is unable or unwilling to purchase the home, then it is time to find another suitor. It is important for the seller or real estate agent to try their best to field multiple offers during the selling process, in which case the second and third options can be contacted to see if they are still interested in purchasing the home. Of course, the second or third options may not make the same offer, so determining if accepting less for the home might need to be considered. If you are looking for a quick sale, however, contacting prospective buyers you know are interested is a good way to go.
Put The House on The Market
The fact of the matter is finding multiple offers is not always easy, and there are not always backup options to contact if a buyer backs out of a deal, which can make the situation much more frustrating. However, putting the house back on the market is not the end of the world. If the buyer backs out of the deal due to a failed home inspection, such as a leaky roof, then it may be a good idea to have the repair made before listing the house again to avoid another failed home inspection at closing.
The Bottom Line
Sometimes selling a home takes patience. While a failed contract can be a difficult process to go through, it is not the end of the journey, and there is most often a light at the end of the tunnel. It is important to try and keep a level head and talk to the buyer rationally to try and close the deal, although there are other options if the deal falls through entirely.
EXIT Realty Bob Lamb & Associates is Murfreesboro’s most innovative real estate team.
EXIT Realty Bob Lamb & Associates
2630 Memorial Blvd, Murfreesboro, TN 37129