As a buyer, you stand to lose the most financially if you back out of a real estate contract, especially if there are no contingencies in place. You'll lose your earnest money and any money you've spent on an appraisal, home inspection, or other services.  For seller, the real risk is "the financial consequences of having to go back on the market are unknown," Tomazic says. "They may not attract the same amount of interest after returning and secure a lower sale price with worse terms."  And depending on the wording in the contract, the buyer could take the seller to court if they feel the reasons for canceling the contract weren't justified.