Broken Contract

6 Hobart

6 Hobart Drive

6 Hobart Drive, which was reported as under contract June 17th, is back on the market today. Contracts fall apart for all sorts of reasons and often it’s because the buyer encounters difficulty obtaining financing. I’m certainly not saying that’s the case here, just cautioning against assuming that some hidden flaw in the house was the difficulty; sometimes it is, often it isn’t. My own impression, expressed here last June, was that, at $2.3 million, there was room to make improvements and still not overspend for this neighborhood. Perhaps the cost estimates came in and poured cold water on that idea, but who knows?

5 Comments

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5 responses to “Broken Contract

  1. NewtoOG

    forgive my ignorance, but I was under the impression it was really hard to break a contract without losing your deposit, outside of a financing issue. is that not realistic?

    • A contingent contract is just that: contingent upon certain conditions being met. Sometimes one of those conditions is a satisfactory building inspection although, these days, those are usually performed after an offer is accepted but before formal contracts are drawn up. Other conditions can include financing, including a building appraisal by the lender, and so forth.

      Once all those conditions are met, the status moves on to “pending”, and that’s when it becomes difficult to recover your deposit.

  2. anon

    Anyone going into contract for this house had to have eyes wide open to get an estimate of renovations before the ink was dry because the upgrades are not inconsequential.

  3. Anonymous

    That’s a lot of house for that price – you could spend $500k and have an amazing house in a great neighborhood

  4. Anonymous

    From the pictures I’d say it is going to take quite a bit more than $590k to bring it up to date.