What if i get cold feet when buying a home?

I’m sure most people have noticed the changes in the housing market over the last several months. If you’re currently searching for your next home, I have both good news and bad news for you. The good news? Purchase prices have finally started to come down. The bad news? Real estate negotiations and contingencies are BACK in most markets, including here in the Pacific Northwest. But don’t worry—I’m here to guide you through what contingencies are, how to navigate them, and what your options are if you need to back out of a contract.

What Are Contingencies?

Contingencies give you, as the buyer, the opportunity to do your due diligence and determine if this is the right home for you.

As your agent, it’s my job to ensure you have all the information you need during the contingency period. Several contingencies can be included in the contract, allowing you time to fully evaluate your new home. While you can waive these, I wouldn’t recommend it.

Some of the most common contingencies in a contract include:

✅ Financing

✅ Appraisal

✅ Title

✅ HOA Review

✅ Septic

✅ Home Inspection

✅ Home Sale (which is making a big comeback after being rare in the last two years)

Other Options

Another way to protect yourself is by selecting the option in the contract that allows you to walk away for no reason and only forfeit your earnest money deposit (also known as a good faith deposit). If you have a sudden change of heart, losing $5,000 is better than being stuck with a home you don’t want.

It’s also crucial to hire a local, full-time agent who knows how to write contracts with strong protections. The right agent will guide you through each contingency period, connect you with trusted inspectors and contractors, and ensure you’re making a sound investment. A knowledgeable agent will also have access to legal resources for any contract questions or unexpected situations.

Why Do Homebuyers Back Out of a Real Estate Deal?

The most common reasons buyers back out include:

❌ Issues discovered during the inspection period that couldn’t be resolved

❌ Financing falling through due to a financing contingency

When Can You Back Out of a Transaction?

Is it ever too late to back out? Once all contingencies are satisfied or waived, and all deadlines have passed, you can still back out—but you will likely forfeit your earnest money deposit if you don’t have a valid contingency as an exit.

What Are the Risks of Backing Out, and How Can Buyers Protect Themselves?

Before canceling a deal, buyers should understand: Whether they will lose their earnest money deposit. If the seller could hold them liable for damages

The best protection is working with an agent who fully understands real estate contracts and can guide you every step of the way. Ensuring your contract allows you to walk away under certain conditions while only forfeiting earnest money is key.

What’s the Best Way to Cancel a Contract?

The safest way to exit is during a valid contingency period, which helps protect your earnest money. Having a highly knowledgeable agent who can identify and advise you on exit points is essential to keeping your money safe—even if you get cold feet.

Thinking about buying but worried about contingencies? I’m here to help! Contact me today, and let’s navigate the process together.