Can a Seller Back Out After Accepting an Offer in NYC?

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Can a seller back out after accepting an offer in New York City? We'll explain when and why it's acceptable for a seller to back out of a real estate deal in New York City in the following video. I'm Nick at Hauseit, visit our website https://www.hauseit.com to learn about ways to save money when buying or selling real estate here in New York City. So, let's get started.

So, can a seller back out of an accepted offer in New York City? Yes, a seller can back out of an accepted offer at any time prior to the execution of a contract. Real estate offers are not binding in New York whether they are made verbally or in writing. It is very common in New York City for sellers to back out after accepting an offer simply because they received a higher offer from a different buyer. In fact, a seller can back out of an accepted offer even if they've just concluded a more formal best and final offer selection process and notified the winning bidder. In other cases, a seller may simply change her or his mind and decide not to sell even after an offer has been accepted.

Can a seller back out after an inspection in New York? Yes, a seller can back out after an inspection. This is because home inspections in New York City are typically conducted before a formal sale contract is signed. As a result, the accepted offer is non-binding and there is no prohibition against either party backing out of an accepted offer or renegotiating the deal after an inspection. It's a common tactic for buyers to use issues discovered during an inspection as negotiating leverage to sweeten the deal terms before signing a contract.

Now as a seller you can either agree to the concessions being demanded by the buyer or you can negotiate if negotiations don't pan out. The seller can back out after the inspection and so can the buyer. As a result, just because you have an accepted offer as a buyer does not mean you have a secured deal in hand. The non-binding nature of an accepted offer is why sellers will sometimes accept multiple offers and send out multiple contracts to multiple interested buyers. By doing this, a seller maximizes the likelihood that at least one buyer will actually proceed with the purchase. Furthermore, as a seller, telling buyers that you sent out multiple contracts may motivate buyers to complete the due diligence and contract negotiation in a more timely manner.

Can a seller back out of a home sale before closing in New York City? So, it's very difficult for a seller to back out of a home sale before closing. Assuming that they've already countersigned the sale contract. If a seller arbitrarily backs out of a home sale before closing, they risk being sued by the buyer for damages. Now damages can include time wasted, money spent and lost opportunities to purchase other properties or a buyer may even claim that during the time they lost by being in contract on your property the market has risen so now they have to pay more money to buy an alternate home. As a result, the only way a seller can back out of a home sell before closing is if one of the buyers’ contract contingencies are met and the buyer decides to walk away from the deal. As a result, for example perhaps the co-op board rejects the buyer in what's known as a board turned out now this will obviously enable both parties to back out of the contract before closing and the purchaser will receive back her or his earnest money deposit.

So, there you have it. We hope you found this video helpful. I'm Nick at Hauseit, visit our website https://www.hauseit.com to learn about ways to save money when buying and selling here in New York City and if you like this video do us a favor hit like, subscribe, leave us a comment. We greatly appreciate it and we hope to see you on the next one!

Save 2% When Buying in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
NYC Buyer Closing Cost Calculator: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/
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