Can I sell home before closing

Question

I gave earnest money 25K and booked duplex home in Bothell WA. Now I am moving out of state. I wanted to save my earnest. Is it possible to sell home before closing. Please advise.

Parwinder Kaur · Answer

Thank you Lynn for your suggestions. I bid home 871K but the listing price was 720K so definitely there will be loan issue. I just booked home 6 days back.

Lynn McGeein · Answer

If you're having it built then read your contract thoroughly to see if it's assignable -- unlikely -- and any termination details, then speak to the builder to see if they are willing to negotiate a much lower amount to exit the contract.  They may be amenable depending on what stage it is in.  If you've already chosen and they've purchased specific finishes or upgrades, especially if unusual, then they may be less than helpful.  If, however, it's early days, a basic model, and someone else could just step in and choose their own finishes, they may agree.  Your lender may be able to assist as well, as if you no longer qualify for the loan, there may be ways to recover your earnest money deposit.

Parwinder Kaur · Answer

thank you for suggestions. I will try to communicate with builder.

Randall Alan · Answer

To answer your question directly - you can’t sell what you don’t own yet.  You could sign a contract to sell it to someone else once it is in your name.  Another option would be to find another buyer and ask your sellers to let you off the hook for your purchase contract and substitute the new buyer.  That would probably be best from a closing cost perspective.

Couple of other thoughts.... why not own it as an investment property?  You can have it property managed even if you are out of town

Also - try talking to your sellers - explain the situation - they have the option of letting you out of your purchase contract.  Try explaining your situation... they might decide the market has increased and that they can do better by relisting  it.  It’s happened to me before.  Maybe they will be descent human beings and refund at least some of your escrow.

Randy

Tim Engvall · Answer

There isn’t much information to go off of. But have you looked over the inspection results? You might be able to take something from that and use it as a reason not to purchase. Why did you put so much down as earnest money? Usually it sits around $500.00-$1,000.00?