Reply to Buyer backing out of no contingency contract

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Agent again.

I was afraid that what you stated as a conclusion is true: Contracts do mean nothing.

It's complete bullshit.[/quote]

No, contracts do mean something, but not everything. The sellers did get $2K--as stated in the contract. If contracts meant nothing, the sellers would have gotten nothing. In this case, the agent f-ed up and should have demanded a higher earnest. And if the agent told you that $2K in the DC metro area is standard, your agent is lying. In hot markets (we live in CC DC), it's not unheard of to hear of 10% EMDs on homes that are up for bidding wars. These are homes in the $750K+ range, so EMDs are upwards of $70K. Now, that is some serious change that buyers will NOT walk away from.

OP might consider a new realtor.[/quote]

I know it's necessary in some markets, but I could never put that kind of money down. Unanticipated things can happen, that could financially cripple some people.[/quote]

Can't you just roll the EMD into the downpayment for the loan at closing?  If so, why is 10% now instead of 10% at closing (say in 30 days) such a big deal?[/quote]

Because this buyer obviously wants to have it both ways and be able to jump out if needed.[/quote]

PP here. I'm not saying I want to breach the contract. I'm saying that things happen. Suppose I get in a horrible car accident and can no longer purchase the house. If all contingencies are removed, then I lose the EMD. I think it's acceptable to lose 10,000 to 30,000 bucks to make up for the seller having to take their house off the market, but 75-100K? That wildly exceeds any damages the seller could possibly incur, especially in the type of market that would require that type of deposit.  In my above example, I now am in the hospital and out six figures.
People always give sob stories I know, and a contract is a contract. All I said is I would never sign a contract that left me with that type of exposure, because I realize that unexpected things can happen. If I lose out on the hottest houses, so be it.
Sometimes you have to get out of a contract. You shouldn't sign one in which the terms of getting out will financially ruin you.[/quote]

Yes, that is a risk one would take. But, there are risks to everything. Also, I think that many (though not all) sellers would not take the EMD if something truly tragic happened before closing. I know that my husband and I would not. Of course, we would want to verify the accident and all, but upon proof, I think that we would just move on to new buyers. [/quote]

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