Photos courtesy of Gentry Locke Rakes & Moore, LLP

After a contracted buyer backed out of purchasing this Bedford County home, the declining housing market forced the owners to sell it for less. They sued the original buyer for the difference.

The original contracted buyer of this Bedford County home asked the sellers to make several modifications but then declined to close. By the time a second buyer made an offer, the house had declined in price.

When a consumer contracts to buy or sell real estate, not following through can be a costly choice.

A jury in Bedford County this week ruled that a man who backed out of a home-purchase deal owed $155,000 to compensate the homeowner for various losses.

The man, Kenneth Grauer, could not be reached for comment. His attorney, Stephen Dunn, declined through an assistant to comment. It's unclear whether Grauer will appeal.

Greg Habeeb, the lawyer who brought the lawsuit, said two couples -- Rodney and Joanna Williams and John and Barbara Owen -- entered into a joint real estate deal to sell a high-end speculative home.

Rodney Williams' contracting firm built the house measuring 4,000 square feet on Everett Road.

Grauer, then of Florida, signed a $650,000 purchase contract, paid a $24,000 deposit and made a large number of special requests for fixtures, appliances and other particulars to suit his liking. He had a bedroom turned into an office, for instance, the suit said.

The owners got the house all ready. Grauer didn't buy it.

After a scheduled November 2006 closing fell through, the couples sued Grauer and went looking for a different buyer. It took until this February -- well into the housing downturn that began in 2007 -- and the best price the couples found was $571,000.

They then went after Grauer for the money they lost because of sliding market conditions and costs associated with holding onto the home an extra 15 months, Habeeb said.

In a strong real estate market, one with plenty of buyers, if one deal falls through the seller can often find a new buyer right away, Habeeb said.

But in this case, the couples argued successfully in court that Grauer's backing out cost them real money -- namely, lost principal, extra interest on project financing, utilities and upkeep, plus legal bills, Habeeb said.

"The losses were so huge it justified litigating the matter," Habeeb said.

Grauer signed a no-contingency deal, meaning the closing was not subject to conditions that sometimes are present and allow a buyer an out, such as that the buyer has to obtain financing or sell his house or that the home has to pass an inspection.

"If you sign a contract with no contingencies and the other person fully performs [their duties under the deal], then you have an obligation to perform," Habeeb said.