Moral dilemma on home sale agreement
A friend came to me with a moral dilemma. I'm interested in your opinions on WWYD.
They are moving across the country at the end of July. About a month ago, their neighbor approached them wanting to buy their house. They verbally agreed on a price about 10%/$25K below what friends believe the market value to be. They were a bit reluctant on the price, but see value in not having to ready the home for sale, go through showings, screen realtors, pay realtors, and all that hassle.
Nothing has been signed. The neighbors are supposed to put their offer in writing and then they can get their lawyers to check everything and proceed.
In the meantime, the neighbors found someone who wants to buy their house, and their buyers put their home on the market, quickly sold it, and are living in temporary quarters until the dominoes move.
Friend has had seller's remorse ever since the verbal agreement, and feels a bit mad/taken advantage of by the neighbor. Doesn't know if he's just cheap or can't afford/qualify for more.
Yesterday a realtor knocked on their door. She has a relocation client that's looking for something the size/price of their house in that particular school district. Thinks they could get $30K more than the neighbor's price, minus $10K commission to the realtor. If friends are willing to entertain selling to these clients, she'll have them fly out this weekend to look at the home.
Would you back out of the deal with the neighbor? I understand there's no legal obligation to proceed, as there's nothing in writing. This is a moral question.
I appreciate your thoughts.