A Few Reasons A Buyer Should Walk Away From Buying A House

If one of these scenarios presents itself, as a buyer you should most definitely rethink the sale. Buying a home can be one of the most exciting moments. The ability to grow equity, customise and renovate, and build a future for you and your family are all great reasons for wanting to own a home.

The current real estate market is seeing homes being scooped up in mere days after being listed. This has pressured many homebuyers to buy homes sight unseen or through virtual tours. Even so, it’s easy for homebuyers to get attached to a home — which can lead to rash decisions.

1. Home inspection comes back with major problems

We always recommend homebuyers complete a thorough walk through and even a formal property inspection if needed before moving forward with a property purchase. Go over the findings. Filter out the major repair issues from the simple fixes so you know what to ask for when countering.

The five biggest concerns we’ve seen are: foundation, water leaks, electrical, plumbing and roofing issues. Even if these issues come up on the report, it doesn’t mean you need to immediately walk away. Some items can be easily fixed but if something major is found be prepared to walk away from your dream home.

2. The home quality is questionable

Coming right off the coattails of home inspections is the build quality of a home. While some newer homes come with home warranties or guarantees from the contractor, there can be trade-offs. Newer construction can result in corners being cut. Misaligned trim work, uneven surfaces and sloppy painting can all be red flags. When considering a newly constructed home, ensure the home has a warranty attached.

Older homes have amazing charm and character but can also be susceptible to costly repairs. Sellers who have recently remodeled a bathroom or kitchen may have done it themselves instead of involving a licensed professional. In this case, the inspection should call out anything of concern. You will also want to be aware of any added construction that may have been completed without a permit. The seller must be held responsible  for removing the work or be forced to bring it up to code.

3. The neighbourhood isn’t a good fit

The average homeowner will live in the property for a number of years. When buying a home, your not just buying a property. You will also be buying into the neighborhood and their future neighbours.

Once you have found your dream home, take a walk around the neighbourhood. It may seem strange, but this can help you determine if the neighbourhood is a good fit for you and your family. If something doesn’t feel right or if you are the only family with children, it might be a good idea to think about the long-term implications of moving in.

4. The price is too good to be true

If a home is priced well below market value or other comparable homes in the neighbourhood, it might be for good reason. Recently, the real estate market has seen a huge up take in home sales. An unscrupulous seller might try to price their home below market or appraised value to cause a bidding war that ultimately drives prices higher than they otherwise would be — causing you client to pay more.

They also might use this time to push a deal through without a proper inspection. As we mentioned before, a home inspection is crucial to evaluating the true price of a home. Don’t feel pressured to continue negotiations if the seller is trying to persuade you to move forward without seeing the property. There could be significant damages or repairs that a lower sales price won’t be able to balance out.

5. Sellers become disinterested or aggressive

Since you probably won’t be communicating with the seller’s directly, you’ll need to ensure your agent keeps you in the loop. You should be able to tell if the sellers are serious about selling their home during initial talks. Sellers that become hostile or unwilling to compromise are cause for concern. Negotiations are meant to find middle ground. If the sellers keep going back and forth, it may be time for you to move on.

Remember: in this market, homes are being listed all the time. There’s a good chance another home that you will love even more will pop up. Lastly, if communication from the seller becomes vague, you’ll want to decide on how you would like to proceed.

6. Things fall apart before closing

Most real estate transactions go smoothly, but there are tons of moving pieces that can cause closing to be delayed or halted entirely. These issues are rarely the fault of the buyer, and tend to be simple fixes, but there are situations that could make the completion go pear shaped.

7. The first is with the title itself. Ensure there is a title deed in the seller’s name.

In a perfect world, you should never have to walk away from a deal. An experienced and knowledgeable real estate agent will guide you through the entire process.

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