Want to back out of selling my home

[Ratekin]

I live in Texas and listed my home for sale with a 3% realtor. Originally listed price for $174,900 and got an offer for $174,000 + 3% of closing costs. We countered with $179,000 + 3% of closing costs; buyer accepted.

The appraisal has come back low -- $168,500 and my situation has changed with the home I was going to move into. Also, I need to walk away with a certain amount of cash in hand.

What are my options at this point? The buyer has countered with $171K + 1.5% of closing costs or $174K + 3% of closings costs.

Please advise ASAP as I need to respond soon. Closing was initially set for December 29th (and today is Dec 27).

Yikes!

 

[HomeGuru]

Just reject the offers. If another offer comes in at the list price and you reject it, you will be liable to pay the real estate commission.

 

[Ratekin]

Thanks for your quick reply. I guess I don't understand about rejecting the offers -- do I have to substantiate why? Also, why would I have to pay a realtor fee? It is my understanding that I would pay commission upon completion of the sale of the property. Is that a contingency that I should add on any contracts going forward?

 

[Ratekin]

As a postscript, I only signed a 30-day contract with the realtor -- it expires on 12/31/00.

 

[HomeGuru]

Thanks for your quick reply. I guess I don't understand about rejecting the offers -- do I have to substantiate why? Also, why would I have to pay a realtor fee? It is my understanding that I would pay commission upon completion of the sale of the property. Is that a contingency that I should add on any contracts going forward?

HomeGuru response: Your real estate agent should be telling you these things.
You do not need to give a reason for not accepting a contract.
Read your listing agreement to understand when a commission is due.