hello I close on a town house using FHA on may 15. I've just realized that I bought a flip and I think I'm over paying. It sounded like a good idea at first but since joining bigger pockets I know I'm paying way too much. I've done the appraisals which came back accurate and the inspection and wondering if there is anyway out. I found a great flip yesterday but I know I prob can't get them both under contract. Any way out of this
Probably would lose your earnest money. Unless the inspection revealed anything that the seller wasn't willing to fix. Within limit of course. Review purchase agreement.
@Tayvon Jackson you have to check your contract. Generally the 3 easiest ways out are (1) Financial Contingency, (2) Appraisal, or (3) Inspection. If all there have these have been released and your status in the MLS is Contract and not Contingent, then you will probably forfeit your Earnest Money if you do not go forward. Why didn't you know that it was a flip prior to your offer? What is your end game with this property? If it was to Buy/Hold if the Rental Numbers still work, what is the problem?
As the buyer, you can just walk. If it's past your inspection period, you will lose the earnest money in all likelihood, but that's the cost of doing business sometimes. Technically, I think they can try to force the sale, but that never happens so it's nothing to worry about. If it's not a good deal, just back out.
Check your contract and discuss with a real estate attorney. Your inspection period may allow you to back out for any reason, OR it may contain restrictions.
Just make sure that you are accurate on the dates. If you miss your inspection period by even one day, you will probably obligated to go ahead with the purchase.
Disclaimer: I am not an attorney, and these are strictly my personal opinions and are NOT intended to be legal advice. I recommend that you seek the advice of an attorney regarding any legal matter.
Can't the seller sue you for the difference between the price you contract to buy to the price they eventually sell at? If the difference is fairly high, it may make financial sense to do so.
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