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what happens when a buyer backs out of a real estate deal when housing markets begin to cool after record highs some home buyers get cold feet imagine you buy a home for 1.2 million dollars when it comes time to close after you have signed your purchase agreement you notice a comparable home down the street sells for 855 000 what happens when a buyer backs out of a real estate deal this information is courtesy of marco krafka broker with re max real estate center some home buyers choose to walk away when it comes to closing day despite agreeing to purchase the property another common scenario occurs when a home buyer backs out after over bidding in a hot market and going over budget once it comes time to close the bank completes an appraisal and refuses the entire mortgage amount the home buyers need to come up with hundreds of thousands of dollars to close they walk away because they do not have the money despite signing an agreement to purchase no matter the scenario walking away at