23Your Boston area home buying dream is within reach. You’ve found a home you really like, but suddenly something’s just not right. What do you do? That depends, of course, on what the issue is – and just how badly you want the home. Here are five potential problems worth thinking about before you make a mistake.
Boston Area Home Buying: When to Walk Away
The real estate appraisal is lower than the sales price.
In a seller’s market, it’s not uncommon for a home’s appraisal to come in below the contract price. When that happens you have several options. 1) The buyer has to come up with additional money to make up the difference between what the bank will lend and the sales price. 2) The buyer can attempt to negotiate the sales price down. 3) The buyer can opt to seek a mortgage from another lender in the hopes that another appraisal will be higher. If you can’t make any of these options work, and the seller isn’t open to negotiate, it may be time to walk away. Why pay more for a house than what it’s worth?
The home inspection reveals too many shortcomings.
Most buyers don’t have the time, patience or knowledge to complete a laundry list of repairs needed to be made on a house they want to buy. While some people aren’t turned off by fixer-uppers, depending on what issues the home inspector uncovers, you could find yourself spending more time and money than you had planned. If you like the idea of moving in with few repairs or replacements, shortcomings found in a home inspection may mean it’s time to keep on looking.
You start second-guessing compromises you made.
When you start the Boston area home buying search you have a list of features in your head that you’re looking for. Ultimately price determines how it all shakes out. Often you find yourself making compromises – electing to do without some things or settle for less on others. Here’s an important rule of thumb to consider: If you second-guess yourself and try to justify crossing things off your list that you had your heart set on, it’s time to reevaluate. Trust your feelings.
You’re at the limit of your original price range.
Let’s say you begin your home search at the top end of your intended price range. If it’s a seller’s market with little available inventory or if you find a house on which there will be multiple offers, you may be tempted to push yourself over the limit. Later, you may have wished you’d left yourself and your family a little more breathing room. You set limits for a reason. If you’re concerned about the payments, the additional cash outlay or depleting reserves designed for repairs, new furniture or emergencies, you may regret your decision.
If you purchase a home with another person and you don’t see eye to eye.
Nothing strains a relationship – personal or business – like spending money when both parties aren’t on the same page. Here’s an important Boston area home buying tip: Before you start the process, discuss what you both want and expect. Anticipate problems and try come up with solutions before they occur. It will make them seem less imposing when and if the time comes. Make a pact that if either of you are uncomfortable, you’ll walk away and keep looking – for a house, not a new partner!
If you can’t sleep.
It’s normal to be a little anxious about the largest purchase most of us will ever make. But if it constantly nags at you or if you’re obsessed with making the wrong decision, it could be time to find peace of mind – and walk away from the deal. Life’s too short for regret. Don’t enter into any purchase you can’t relax and smile about.
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