Quick Tip of the Day: You Have Time to Back Out—Here’s What Buyers Should Know

🏡 Quick Tip of the Day: You Have Time to Back Out—Here’s What Buyers Should Know

When buying a home, timing is everything. But here’s something many first-time buyers don’t realize: you typically have 2–3 weeks after your offer is accepted to back out—without losing your earnest money.

That’s right — once your offer is accepted and you’re “under contract,” you still have time to complete inspections, review details, and make informed decisions before the deal becomes final.

💰 What Is Earnest Money?

Earnest money (also called a good faith deposit) is the amount you put down to show the seller you’re serious about buying their home.

It’s usually 1%–3% of the purchase price and gets applied toward your down payment or closing costs later. But if you change your mind after the due diligence period, you could lose it.

That’s why understanding your contract timeline is so important.

📅 The Inspection or Due Diligence Period

Once your offer is accepted, most contracts give you a window—usually 10 to 21 days—to complete:

• 🔍 Home inspections

• 💸 Appraisals

• 🏦 Loan approvals or financing checks

• 📑 Review of disclosures and property condition

During this time, you can negotiate repairs, request credits, or even cancel the contract if serious issues come up — and still keep your earnest money deposit.

This period protects buyers, giving you room to make decisions confidently and without pressure.

✍️ Why Acting Fast Still Matters

Even though you have time to back out, it’s important to get your offer in early and lock in the contract as soon as possible.

Here’s why:

• Homes can go under contract quickly in competitive markets.

• Interest rates or loan terms can change overnight.

• The sooner you’re under contract, the sooner you can start inspections and secure financing.

So don’t wait for perfection—get your offer in, then use your due diligence period to double-check the details.

🧠 Pro Tip from Real Estate Professionals

Work closely with your agent and lender to understand every timeline in your contract. They’ll help you:

• Track key deadlines (inspection, appraisal, loan approval).

• Negotiate fairly if issues arise.

• Ensure you’re protected from losing your deposit unnecessarily.

Knowledge truly is power when you’re buying a home—and your real estate team’s experience is your best defense against costly mistakes.

Watch the full video here

💬 Final Thought

Buying a home is a big commitment—but it doesn’t have to be scary.
Remember: you have 2–3 weeks to make sure the home is the right fit before your earnest money is at risk.