We’ve said time and time again that buying real estate is not for the faint of heart. The perils are even greater when the property is not for your own use. Think about it. You’re buying house that needs to be appealing to someone you don’t even know! Talk about pressure. So, whether you are buying property for your personal use or as an income property, the pressure’s on. Carod Properties works hard to ensure that our clients are aware of all aspects of the buying process. Part of offering our invaluable information, to increase your knowledge so you are as knowledgeable a buyer as possible, is informing you on when the home is not bought. Huh?
It’s Murphy’s Law. If something can go wrong, it will. No transaction is full-proof. Not every home that you attempt to buy—search for, make a decision on, make an offer on—ends up yours at the end of day. There are a few things to be mindful of that may be impediments to whether or not you will own that home.
4 Reasons Your Real Estate Deal May Fall Apart
- Buyer’s Remorse. You don’t just work with Carod because it says “Realtors” on the door. We educate our clients on the buying process. We get to know you: what are your must-haves, what and where you want to buy, and what you can afford. So, when you wake up in the middle of the night, after making an offer or while in escrow, thinking “what have I done?” we can answer: you’ve searched with us, found the right home for your situation, thought about it, weighed pros and cons, and put in a fair offer on the perfect house…for you.
- Addressing Repairs on Home Inspection. If you are listening to us, you won’t be immediately deterred by a few things found during home inspection. Unless your home is a new build, issues are to be expected. The way to approach them are to address it in your offer (ask the seller to repair or reduce the price) or decide you want the house and will do it yourself. Either way, before you think that someone is getting over on you and you’re about to purchase a money pit and decide to walk away, get a competent contractor’s estimate to help belay those fears.
- Not Being a Good Money Manager. Having that oh-so recommended pre-approval letter in your hand (see our previous, recent article) is not carte blanche to run amuck with your spending. Deals aren’t made over night and your lender can and will change your approval amount, if not revoke it completely, because your credit rating changed in the interim. So, just wait a few days…years before you decide you need a boat in the driveway of your new home (that you don’t even have yet).
- Varying Appraisals. Sometimes there’s a disagreement over what a home is worth. This can happen in two instances. 1) Between the sellers and the lenders. 2) Between the sellers and the lenders. Huh? Well, the first scenario is when the initial price is higher than what your lender feels is accurate. The second scenario is in instances of a bidding war and the price has been driven up (through no fault but to the ultimate benefit of the seller) beyond what the lender feels is appropriate. In either scenario, it’s pretty much to your benefit. It will keep you from paying an amount that is disparate from what you will be getting in a home. The appraisal process helps keep you level-headed in what can be an exciting an emotional process where your heart might tend to override good sense.
It can be hard to walk away from a property once you have your heart set on it. However, you don’t want that dream to turn into a nightmare. Think through every decision and just trust in the process. If the deal did not work out, that wasn’t the house for you. And, we’ll just keep right on looking!
