What Should You Do When a Buyer Backs Out?

By Matt O'Neill

Matt O'Neill Real Estate represents the region's finest properties with exceptional skill using the most innovative technologies currently available. We offer ultimate privacy and security, speed, and efficiency.

Imagine this: You’ve packed up your whole house, moved to your next place, and signed the papers to close the sale. Everything seems perfect, right? Then you get the call. The buyer decides not to close, and now you’re left in a nightmare scenario.

This happens more often than you might think. However, the good news is that you can protect yourself with earnest money. Today, I’m breaking down what earnest money is and how it can protect you from buyers who back out at the last minute.

Earnest money protects you. In the case of the sale, the buyer put down $50,000 in earnest money. This money is meant to protect you in exactly this situation. It’s like insurance. If the buyer suddenly backs out, you don’t just lose everything you’ve worked for. Instead, you get to keep that earnest money.

Now, I know what you’re thinking. “I’d rather have the buyer close and move on with my life.” And I get it. But that $50,000 can help ease the pain and give you some peace of mind while you figure out your next steps.

Why buyers back out. Buyers sometimes try to get out of deals by claiming they couldn’t get financing or making other excuses. But here’s the thing—real estate attorneys can uncover the truth. If the buyer is just backing out without a valid reason, they can’t simply walk away without consequences.

How to protect yourself? This is where having the right legal support can make all the difference. Real estate attorneys know how to handle these situations. They can work to make sure you get the protection you deserve. If the buyer backs out at the last minute, that $50,000 earnest money is yours to keep.

Remember, earnest money isn’t just a deposit—it’s your safety net. If you want to make sure you’re fully protected and get the compensation you deserve, make sure to negotiate earnest money early in the deal.

If you’re facing a situation like this, you can call or text me at (843) 532-4220 or email me at matt@mattoneillteam.com. I specialize in protecting sellers from situations like this because I know how to handle buyers who try to back out without a valid reason.