Own Luxury Homes®
What If Things Go Wrong When Buying a House?
Real estate transactions fail at many points over a 30-60 day timeline. Low appraisal, inspection problems, mortgage denial, seller backing out - each has remedies. First rule: check contingency dates before acting. Inside a window you usually recover earnest money (1-3% of price); outside it, options narrow. Own Luxury Homes® 12-Point Agent Integrity Audit™ - your first call when things go sideways.
What If Things Go Wrong When Buying or Selling a House? The Emergency Guide
Real estate transactions involve many moving parts over 30–60 days, and any one of them can go sideways. The appraisal comes in low. The inspector finds something serious. The mortgage falls through. The seller tries to back out. You change your mind. These are not rare events — they happen in a meaningful percentage of transactions. This guide covers what actually happens when things go wrong, what your options are, and what you should do first.
| The Scenario | What It Means | Your First Move | Full Guide |
|---|---|---|---|
| I want to back out of buying | Depends on your contingencies and timing; may cost earnest money or more | Review your contract for contingency dates before anything else | Can I back out? › |
| Appraisal came in low | Home appraised below the purchase price; financing gap must be resolved | Request a copy of the appraisal and review comparable sales before negotiating | Low appraisal guide › |
| Inspection found major problems | Significant issues uncovered; must decide: negotiate, exit, or accept | Get contractor estimates before responding to the seller | Inspection problems guide › |
| Mortgage was denied or delayed | Financing contingency protects you; seller options vary | Contact your lender immediately and review your financing contingency date | Mortgage falls through guide › |
| Seller is trying to back out | Rare and legally complicated; you may have specific remedies | Review your contract; contact a real estate attorney | Seller backing out guide › |
| Can't cover closing costs | More common than buyers expect; several solutions exist | Ask about seller concessions and lender credits before assuming the deal is dead | Can't cover closing costs › |
| My home isn't selling | Days on market rising; price or presentation is usually the issue | Get honest feedback on price and presentation before reducing blindly | Home not selling guide › |
The First Rule of Real Estate Emergencies: Check Your Contingencies
Before doing anything else in a real estate crisis, pull out your purchase contract and check your contingencies and their expiration dates. Contingencies are contractual exit rights that protect you — financing contingency, inspection contingency, appraisal contingency. Inside the contingency window, you can usually exit and recover your earnest money. Outside the window, your options narrow significantly. The single most common mistake buyers and sellers make in a crisis is acting without first understanding where they stand contractually.
“I have been through every one of these scenarios with clients, often multiple times. The calls usually start the same way: "Something just happened and I don’t know what to do." The first thing I always say is: "Do not do anything yet. Tell me what the contract says and when your contingencies expire." Because the answer to almost every real estate crisis starts there. Inside your contingency window with a legitimate contingency, you have options. Outside the window without one, your options are much narrower and the cost of backing out is real. Know your contract before you panic.”
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®
What happens if something goes wrong when buying a house?
It depends on the specific situation and where you are in the transaction relative to your contingency deadlines. If you are inside an active contingency (inspection, appraisal, financing), you typically have the right to exit and recover your earnest money if the specific contingency’s trigger condition is met. Once contingencies expire, backing out typically means losing earnest money and possibly facing a lawsuit for specific performance in extreme cases. The guide above covers the most common scenarios; your starting point in any crisis is reviewing your purchase contract for the relevant contingency dates.
Own Luxury Homes® — we are your first call when something goes sideways. 12-Point Agent Integrity Audit™. Talk to a specialist ›
"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)