You've finally found a house you love and your offer was accepted! You've scheduled or even completed your inspections, but how do you know moving forward with closing is the right move? It's possible that you see some things that make you feel uneasy in your stomach, plus you're making the biggest purchase of your life. So what are things that are more than just normal nerves that might make you want to consider walking away from the purchase? Read on to find out more.
When To Consider Walking Away From A Home Purchase
Major Concerns on the Home Inspection: Home inspections will always find items that need to be fixed or replaced, but they are generally minimal in terms of cost and amount of required work. If the report turns up something significant with the foundation, for example, you may be facing years of costly issues.
Concerns About the Quality of the Build: Whether the home is new construction or resale, having a home with "good bones" is important and can save you a ton of money and hassle. Make sure to scrutinize the home and look for areas where the builder or remodeler cut corners. Chances are, if you find an area of concern, there are other areas of concern as well.
The Title Company Finds an Issue: Title insurance is required in almost all transactions to protect your investment. Title disputes can be lengthy and very costly, and if the title company uncovers an issue, that is cause for concern. Common title disputes include previously unknown heirs who turn up to claim the house or the uncovering of an illegal deed at some point in the home's history. Especially concerning if the title company will not provide title insurance for your property.
The House is Too Unique: Many people like things that aren't cookie-cutter or something you see in every home you walk into. However, making a home too custom and unique may make resale extremely difficult, as the number of buyers will be considerably smaller. Weigh the pros and cons, especially if you really love the home and plan to live there long term.
Environmental Concerns: When buying an older home, it is important to determine if there are any environmental issues such as asbestos, lead-based paint, or mold issues. Buying a home with any of these issues can cause significant health problems and be extremely expensive to resolve.
The Neighbors: Before purchasing a home, we recommend driving by the home on different days, at different times, including at night. The neighbors may seem quiet during the day, but may have loud parties most weekends. Or one of your neighbors may leave their dogs out all day or night. Not cliquing with your neighbors can make your life difficult, but it could also impact resale should you decide to move.
Not Loving the Location: You may absolutely love the home, but it is important to research the neighborhood and area nearby as well. There may be freeways close by or plans for expansion, the neighborhood may be close to an industrial or commercial area you didn't know about, and so much more. Doing some research and knowing exactly what the location entails can help ensure you don't find yourself in a situation that can significantly impact the enjoyment of your home, and resale as well.
You Can't Really Afford the Home: Buying a home that is a financial stretch for you or your family can be a recipe for disaster. There is a difference between knowing you can easily make your mortgage payments, but cutting back on eating out to make up for the extra utility costs of a bigger home versus not being able to afford to fix an unexpected repair. There is always unpredictability with homeownership, and making sure you have a clear picture of your financial situation and what you can afford is critical.