You accept an offer from a buyer when selling your home, but suddenly change your mind! What happens next for you as a homeowner?

Selling your home is a big decision, and it can be hard to uproot your life and leave your home of many years. Before you find a real estate agent and start writing your list, make sure you’re fully prepared.

But what happens if you list your house, receive an offer, accept it, and then change your mind? Can you back out without any worries, or will you incur some financial loss?

It all depends on your contract!

Whether you can back out without penalty depends on your reasons for doing so and how your real estate contract is worded. Let’s say you simply changed your mind because you were uneasy about moving, that’s probably not a very valid reason to back out.

But it’s common to include contingency clauses in real estate contracts in case you can’t find an alternative home. According to NAR, at the end of February, there was only a 2.9-month supply of homes available nationwide, compared to the six-month supply typically needed to meet buyer demand.

So let’s say you accept an offer on a house, and your contract includes a clause giving you 60 days to find a new home. If you can’t find one (because you can’t afford the mortgage on the new home, for example) and you back out of the contract, you should be protected.

Sometimes plans change, and feelings change. But when it comes to selling your home, changing your mind after accepting an offer and deposit can lead to a host of problems if you’re not adequately protected. That’s why it’s important to hire a good real estate agent and real estate attorney who will help you every step of the way.

Before signing a contract, be sure to read the terms and conditions carefully so that you know what you can and cannot do.