Thinking about backing out of a home offer? You’re not alone — many first-time buyers second-guess their decision after making an offer. Maybe the inspection raised concerns, your financing hit a snag, or you just got cold feet.

So… If you’ve made a home offer and are having second thoughts… can you back out?

The short answer is: yes — but it depends on where you are in the process and what your purchase contract says. If you’ve never bought a home before, here’s what you need to know to protect yourself and your earnest money.

When You Can Safely Back Out of a Home Offer

Real estate contracts typically include contingencies, which are built-in conditions that allow you to cancel the deal without penalty if something doesn’t go as expected. Contingencies in your home offer give you safe ways to back out. As a first-time buyer, it’s critical to understand how these work — and how they protect you.

If your contract includes these contingencies, you may be able to walk away and keep your earnest money:

Here are the most common contingencies that give you a legal way out:

• Inspection contingency: If the home inspection reveals serious issues (like mold, foundation cracks, or electrical hazards), you can request repairs, renegotiate the price, or walk away entirely — all without losing your deposit. Learn more about home inspection red flags.
• Financing contingency: This protects you in case your loan falls through. If you can’t secure financing — even after pre-approval — you can cancel the deal and typically get your earnest money back. If your mortgage application is denied, you may be protected under the financing contingency. Here’s what happens when financing falls through.
• Appraisal contingency: If the home is appraised for less than your offer price, your lender may not cover the difference. This contingency lets you renegotiate or walk away if you’re not comfortable paying the gap.
• Title contingency: Before closing, a title company will review the home’s legal ownership and history. If there are liens, ownership disputes, or other legal red flags, you can exit the deal based on this contingency.

These contingencies aren’t automatic — they must be included in the offer and agreed upon by both parties. Your agent should guide you through what to include based on your local market and comfort level.

When It Gets Risky (and You Might Lose Earnest Money):

Now, what happens if you simply change your mind — but you’re past all your contingency deadlines?

This is where it gets tricky.

If you back out after the contingency periods have expired, and your reason isn’t covered in the contract, the seller can legally keep your earnest money deposit. That could mean thousands of dollars lost, even if you never close on the home.

Examples of risky situations:

• You decide you don’t like the neighborhood after all
• You get cold feet and want to pause buying
• You found another house and want to pursue that one instead

These aren’t protected reasons under most contracts. If you’re unsure about your timeline or commitment level, make that clear to your agent before submitting a strong offer.

How to Protect Yourself Before Making a Home Offer

• Read your contract carefully. Know the contingency deadlines and what each clause allows you to do.
• Ask your agent to walk you through worst-case scenarios. They should explain how each contingency works and what happens if you cancel.
• Don’t waive contingencies lightly. In competitive markets, some buyers remove inspection or appraisal contingencies to get their offer accepted — but this comes with real risks.