Yesterday, I wrote a post called How Easy Is it To Get Out of a Contract? It was very well received, since this is a topic most buyers and sellers wonder about and most Realtors have to deal with, at some point.
Turning the subject around, how do we protect Sellers from a buyer who changes their mind? That is a little tougher.
Keep in mind that each state has a different sales contract, and my 
comments deal specifically with Virginia.
comments deal specifically with Virginia.When a contract is ratified in Virginia, more often than not, it has contingencies. There is a mandatory contingency for any property located in a Property Owners Association; the buyer has the right to review the rules and determine if they can live with them. If they get the POA documents and decide that they are too restrictive (or, unfortunately, if they just have changed their mind), the buyer can walk away with no penalty as long as it is done within the 3 day review period. The seller has no recourse if the buyer walks away at this contingency.
The other contingencies are opt-in contingencies: financing, appraisal, home inspection, radon, third party approval and others, as specified in the contract. If the buyer opts in to these contingencies they can use them to get out of the contract. The seller has no recourse. The caveat here is that to use the several of these contingencies, a condition must be met; an appraisal that doesn't come in at a certain value, a third party who does not accept the contract.
So how can we protect the seller? One thing we can do is make sure that the lender letter is a solid and not just a 'pre-qualification'. Of course, the lender has been hired by the buyer, so there is only so much information that we can get from them.
I have found the best way to protect the seller is to create a strong rapport with the buyer's agent and then usher the buyers through the contingencies methodically and with purpose. Encouraging the seller to make their property quickly available for the home and radon inspections, to be available for the first appraisal appointment and to order the POA docs immediately upon receipt of the contract.
Just like working with buyers, one of the most important thing a Realtor can do is to counsel sellers about the contingency period and what it means for them. It is not a time to start packing. It is a time to hold tight and cooperate toward the removal of the contingencies. This can be one of the hardest times in the sales process; it feels like you have sold your property, but it is not yet a 'sure thing.'
Clearing the contingencies quickly and getting the contract from 'contingent' status to 'fully under contract,' should be the goal of both the buyer and seller agents.
Cancellations happen, but with a clear understanding of what the contingency period means, a seller can rebound from this disappointment and move on to the buyer who was meant to buy their home.
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Contract
If you need to sell your home and you owe more than your house is worth, i may be able to help. I specialize in working with home owners to get your home sold. There are many options such as a short sale whcih may be able to help you.
and has a 2 year lease that continues for another 14 months. She is hoping to buy at the end of her lease period and called to let her sister know this. She also let her know that because my friend, a professional Realtor, mind you, is so busy, she would look around for the next 14 months or so with a friend who just got their license. Not cool! Let me explain why...
I am not an agent that likes to sit idly by while my client does all the foot work. I like to earn my commission and being brought in to "close the deal" is not what I call earning a payday.
loans out on the property, you are waiting for the bank (or banks) to approve your offer. Remember, they are going to lose money on this contract; they need to determine if the loss is accpetable to them. When you signed the contract, it was signed as 'subject to 3rd party approval.' Now you need to get that approval. If the loan is held and serviced in house, this can be a fairly straight forward process (although it can still take a while). If the loan has been sold to an investor, the approval process will include getting the investor(s) to approve the offer. If you have more than one loan, or there are multiple investors on the loan that was sold, there may be multiple investors involved who must approve the contract. 
to work through. 
Are you willing to sometimes put my needs above yours? Are you willing to deal with my breakdowns and deficiencies? How will you feel when you realize I am not as perfect as you believe me to be?
