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Hey there, it’s Marvin Morrison, your friendly Realtor over at Brookstone Realtors. I wanted to shoot you a quick update on what’s happening in the real estate scene. Things have cooled down a bit lately, and it’s no surprise with interest rates climbing and prices hitting the roof. It’s like the market caught a chill.

In September, we saw around 53,000 home purchase agreements hitting the brakes, and that’s just the latest in the trend. August took the cake with a whopping 60,000 cancellations—record-breaking since we started keeping tabs back in 2013.

It’s not just cancellations making waves; we’re breaking records on deal cancellations and price drops too. Folks are tiptoeing into the market after the most significant mortgage-rate jump in over four decades. Redfin spotted an 8.9% drop in new home listings in September, thanks to mortgage rates hitting a two-decade high. The overall home sales dance took a 16.9% dip year-over-year.

Buyers at every stage are tapping the brakes, having some second thoughts about diving into this massive commitment. You know, that “under contract” phase, where you’re in this real estate limbo between offer acceptance and making it official. It’s like being in real estate purgatory, but it’s part of the game.

Now, if you’re thinking about doing a 180 and backing out during this under-contract limbo, there are some things you need to know. That purchase agreement you signed? It’s a legal thing, but don’t worry; you’ve got some room. You can still back out if you or the seller can’t meet the contingencies. Those could be financing hiccups, major issues discovered during inspections, or realizing the home’s value doesn’t quite match the price tag.

And hey, let me spill the tea on timelines. Contingencies have deadlines, so be on your toes. From securing that loan (usually 30 days) to getting the home inspected (7 to 14 days), it’s a bit of a juggling act. Oh, and the fine print? Read it like your favorite thriller novel so you don’t miss the chance to gracefully bow out.

Now, what if you’re sans contingency? If you threw down some earnest money when you made the offer (usually 1% to 5% of the purchase price), don’t forget about it. Backing out without a contingency parachute risks losing that earnest money. And trust me, you don’t want to get caught in that twisty legal tango known as “specific action.”

After signing on the dotted line and the contingency clock runs out, it’s like trying to do a U-turn on a one-way street—tricky. States might drag you into mediation if things get hairy before heading to court, so tread lightly.

If you find yourself in deep water post-contingency, and you’re itching to back out, you better have your reasons. Get those down in writing, and if things get sticky, my advice is to rope in a real estate attorney. Losing some earnest money might sting, but it’s a smaller pain compared to a full-blown foreclosure drama down the road.

And remember, whether you’re on the buying or selling side, having the right protections in your contract is crucial. It’s like having a solid foundation for your home – the bedrock that ensures stability in the ever-shifting landscape of real estate. That’s where I come in, your go-to Realtor at Brookstone Realtors. I’m here to make sure your interests are safeguarded and guide you through the twists and turns of the real estate journey. So, when it comes to your next move, trust in the expertise and dedication that comes with having Marvin in your corner. Let’s turn those real estate dreams into reality together!