Reasons to walk away from the deal
The process of purchasing a home can be long, exhausting, and frustrating, so when you finally find a home that will fit your needs, it’s easy to see it through rose-colored glasses. However, staying practical about the purchase can save you money and even more frustration in the long run.
When to walk away from buying a home
Knowing when to walk away is helpful when you hire a realtor. Either way, here are three things to watch out for before buying a home. Remember, it’s OK to walk away from the deal—if you do, know it just wasn’t meant to be!
1. Foundation Issues
A foundation issue may not be noticeable during your initial tour of the property. Many foundation issues can be overlooked by an untrained eye, which is why it is important for a home inspector to take a look and make sure there is no structural damage before you decide to purchase a home. Structural damage can occur from water damage, the age of the home, termites, poor construction, flood zone, and more. If the report from your home inspection reveals foundation issues that aren't easily addressed OR your seller is unwilling to address those problems, it may be time to walk away.
2. Flawed Survey
A property survey is a sort of blueprint of the lines and boundaries of a property, along with any buildings or structures upon it. Surveyors have a very strategic and strict protocol to follow when creating a property survey, and not just anyone is capable of this process. However, surveyors are humans too, and while rare, mistakes can still occur.
Banks and lenders typically require a survey of the property you intend to purchase. Make sure to check for mistakes in the survey as soon as possible to avoid extra work and added time to closing.
If you notice flaws in the survey, there are steps that can be taken to protect yourself. However, it’s not the easiest process and can require lawsuits, red tape, extra coordination, and more.
3. Dirty Title / Outstanding Liens
A title is a contract of ownership. A lien is a "hold" on a property that remains as collateral when an owner owes money to banks, lenders, or even the IRS. Before purchasing a home, it is in your best interest to make sure that the title is "clean," meaning that the name of the previous owner is on the title and that there are no liens on the home.
Often, potential homebuyers are not aware of a property lien or a dirty title until they are too deep into the home-buying process, and at that point, homebuyers are ready to just get it over with. However, working through the process of eliminating a lien can be even more taxing and tiring than looking for a different home. A lawsuit may have to be filed and there can be a lot of red tape.
To purchase or not to purchase?
Knowing whether to go through with a purchase or not can be a delicate situation. The truth is, some homes are just too good to be true, and if that’s the case, trust your realtor and most of all trust your instincts. To avoid purchasing a “money pit” hire a realtor, or reach out to one of our partners in your area. They would love to help you during your home buying process!