Here are three of your best options for backing out of a deal with one buyer to take advantage of a stronger offer from another.
Today I’d like to answer a question that comes up rather often: “If I’ve already agreed to sell my home to buyer A, and we’ve entered into escrow, but buyer B comes along and makes a more attractive offer, can I back out of my deal with buyer A?”
The short answer is yes, but you’ll need buyer A to agree to the cancellation first.
What do I mean by that?
Most listing agents will quickly dismiss this as not being an option and will inform buyer B that, since the contract has gone into effect and the home is in escrow, they can make what’s called a backup offer. If buyer B agrees to this, it gives us a second option that we can sit on for up to 45 days. If during that period, buyer A backs out or is unable to close on the home for any reason, buyer B can step in and take their place.
Here’s the thing: If your agent is truly willing to work for you, there’s an even better alternative. Depending on how much better buyer B’s offer is, you can actually offer money to buyer A as an incentive to walk away from the deal.
For instance, say buyer B’s offer is $20,000 higher than buyer A’s. You can share that information with buyer A and attempt to buy yourself out of the contract by offering $5,000, $10,000, or however much comes out of negotiations.
If buyer A has an inspection completed on your home and they come back to you with a laundry list of requested repairs, a third option is to refuse their requests. Hopefully, buyer A will then change their mind, clearing the way for you to move forward with buyer B’s offer.
There are millions of different scenarios that can come up in the negotiation stage, which is why it’s so important to make sure you have an elite agent by your side during your next transaction. If you have any real estate-related questions, please contact your Omaha’s Elite agent today. We’d be happy to support you in your next home purchase or sale!