We put our first deal under contract. Taking what we learned from our real estate class, we put our inspector clause and escape clause into the contract. Well, after inspecting the investmant property with another potential investor, we found the repairs were going to be much more than expected. We learned valuable info from a seasoned investor who walked through the property with us. He was going to be potentially our buyer.
However, we found that the “bones” of the house were a little shaky and that the needed repairs were understated by the seller. After doing our due diligence. We need to back out of this contract.
How do you back out of a contract? Do you do it verbally with the seller? Or is there a document that we sign?