Home Purchase: When Should I Walk Away?

Written by Posted On Friday, 19 February 2016 22:12

Finding the ideal home is similar to the dating process. While you may fall in love with a particular dwelling, ignoring certain red flags can only cause you grief later on. Knowing what signs to look for before you sign on the dotted line can save you a lot of money and heartache in the future.

It’s Gone Beyond a Comfortable Price

Purchasing a home is an exciting time in a buyer’s life. However, with that happiness, can come a great deal of stress and aggravation. While you want to find a dwelling that you will love to come home to, you don’t want to be house poor. Meeting with a mortgage pro can give you an idea of how much home you’re able to afford. Unfortunately, in today’s market, you could be in for a multi-offer type of deal. Instead of getting into a bidding war to where you can no longer afford the home, walk away from the deal and choose a home that suits both your heart and pocket book. There’s nothing worse than maxing out your finances on a home you love, but you’re unable to furnish it.

The Bank Appraisal is Lower Than the Contract Amount

You may find yourself involved in a multiple offer situation on a dwelling that you love. While you may have won the bidding wars, the home still has to appraise with the bank. In the case where a bank appraisal is lower than the contracted amount, you may have to secure additional funds in order to close on a property. You could also negotiate a lower price with the seller of the home. However, if you’re in the process, and the prospect of overspending for a home isn’t sitting well with you, you need to run from the deal.

Home Inspection Filled with Issues

A home that needs some TLC can be perfect for those who are handy and like to work with their hands. After you’ve secured a renovation loan, you’ll be free to paint, open up walls and update the exterior and interior of the purchased property. However, if the home inspection is wrought with issues you don’t have the time to repair, you may want to keep looking around.

Too Many Compromises

It can be difficult to find a dwelling that meets every one of your requirements on your must-have list. While price can be a contributing factor in how many of your wants are actually met, you don’t want to give up on each of your dreams. If a walk-in closet and spacious master bedroom are key features, you’re not going to be happy unless your home has these qualities. It’s probably best to continue on with your search until you can check off your top favorite amenities.

Sketchy Neighborhood

Neighborhoods that are transitioning can be very budget-friendly to a buyer. However, you want the neighborhood and community that you choose to be favorable. Signs to look for include graffiti, boarded up buildings and unkempt houses in need of work. You also want to take note of a large number of homes on the market. This mass exodus may be a red flag and signal distress in the community. It could also affect your home’s resale value if you need to sell down the road.

Joint Decision

If you’re purchasing the property with a spouse, friend or relative, you both need to be happy with your choice in homes. The home purchasing process is a major financial step, and it needs to be made jointly. Before you begin the process, each person should list their desires and wants. If the other party has any doubts, it’s best to move on to a dwelling that you both agree upon.

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Bethany Mairinger

My name is Bethany a blogger and independent freelance journalist. Working as an independent media consultant since 2009. I've contributed a lot of news articles, ideas, inventions and more on various online weblogs.

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