Sometimes when we purchase something we have a feeling of remorse soon after. This is no different when you purchase a house, in fact, the remorse can be much worse.
Experienced Real estate negotiators are keen to get the deal signed that day for this reason.
They will encourage their sellers not to miss out, as a buyer can withdraw an offer at any time until it is signed by both parties, and this includes any counter negotiations.
Whereas the inexperienced or perhaps unmotivated salespeople might not be as prudent, especially if they are selling in a “Sellers market”, as they know there will be plenty of offers to fall back on.
This is not so in a “buyer’s market”. They will not be acting in the best interest of their sellers if they do not advise their seller that time is of the essence.
There have been many sellers disappointed after the initial excitement of receiving an offer, when they have taken too long to sign the documents, and the buyer has suffered from “buyers remorse” and withdrawn their offer.
Factors that can cause buyer’s remorse
- A buyer could have been buying emotionally with a heightened sense of excitement and not properly considered the long term financial aspects of the purchase.
- Perhaps the buyer could be buying because of their fear of missing out ( FOMO)
- The buyer could feel that they need to meet others expectations of them and own a home themselves?
- Or they could have been motivated by emotions that gave way to heightened expectations and anticipation of status or enjoyment.
Whatever the reason, it can be a stressful decision in considering the alternatives in pulling out of the purchase, if there is not time or if a law is not in place like a “cooling off period” to enable a buyer to cancel the purchase.
Remember, when the sale becomes unconditional, a buyer is no longer able to back out of the contract without incurring significant financial penalties.
The contract for sale will outline what the buyer is required to pay the seller as compensation for pulling out of an unconditional contract.
These costs may include paying for your own and the seller’s legal or conveyancing fees, and your own and the seller’s building valuation and inspection fees.
Any buyer considering backing out of a property sale and purchase agreement should obtain legal advice before breaking a legally binding contract.
Always make sure that you know your rights under consumer law before making substantial purchases.
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