ArcaMax

Dear Monty: We have an accepted offer on a home. But the home we wanted has come down in price, and we would love to get it instead. Can we get out of our current contract?

Monty's Answer: So, you're in a tricky situation. You've already signed on the dotted line for one home, but now the house you wanted has dropped in price. I completely understand the temptation to switch gears -- who wouldn't want their first choice if it suddenly became affordable?

Here's the Reality: Once you have an accepted offer, you've entered into a legally binding contract. Signing a real estate contract isn't something you can just walk away from without consequences. But that doesn't mean you're completely stuck, either.

Here are the primary possible outcomes:

-- The seller has no interest in letting you out because they have made commitments.

-- The seller will let you out under certain conditions that will likely cost you money.

-- There may be ways out because of how your contract is written.

If you're serious about pursuing the other home, here are two suggestions for proceeding.

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One is that you talk to a real estate attorney. They can advise you on the specific legal implications you have agreed upon. Your attorney will then have suggestions about how to approach the seller. Should it be the listing agent, your attorney or you directly talking to the seller? For all you know, they may have seller's remorse. Sometimes, a seller will release you from the contract for a negotiated price and a cancellation agreement. Or they may have another buyer.

Another approach is to contact your agent. Your agent could talk to the seller's agent to get a read on the seller and see if the agents and the seller can come up with a solution together. The agents will see extra work in this effort, but they are starting over if there is no sale. If they come back with a workable solution, that could also be an option. Remember that even if you can negotiate a release from the buyer, the real estate agents must agree to waive their right to their commission, or you will have added expense over any breakup fee.

If that does not work, the next step is to proceed with the current transaction or talk to your attorney. Understand that the agents may not know enough about the law or may have a bias that creates a conflict of interest.

There is so little information in your question that giving firm direction or the best options to consider is not possible. You know more about what is going on than anyone. What is happening in the local real estate market plays a role here, as do the seller's circumstances.

Be mentally prepared to move forward with your current contract if there's no viable way out. I have previously written an article with tips on finding a good real estate attorney (you can find it on my website). However, this advice takes time, and you don't have the time, so reviewing it may inspire a shortcut, such as a referral from a title insurance company.

Real estate transactions are serious business with legal implications, but they're also deeply personal decisions about where you'll call home. Whatever you decide, understand all the potential consequences before taking action.

Richard Montgomery is a syndicated columnist, published author, retired real estate executive, serial entrepreneur and the founder of DearMonty.com and PropBox, Inc. He provides consumers with options to real estate issues. Follow him on Twitter (X) @montgomRM or DearMonty.com.

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