3 Reasons To Walk Away From A Home Purchase

Buying a home can be a stressful process. Many people look at a number of homes before they find one that they love and can imagine living in. Finding a house and having your offer accepted can be incredibly exciting, but that does not always mean that you should go through with the deal. Purchasing a home is a huge financial investment, so the last thing that you want is to purchase the wrong home. Sometimes, red flags may appear after your offer is accepted. Some of the top reasons to walk away from buying a home before the transaction closes include:

1. Home Has Major Problems

After your offer on a house is accepted, there will be an inspection period. During this time, it is your responsibility to hire a home inspector to conduct a comprehensive inspection of the house. Best case scenario, your home inspection reveals minor issues. However, in some cases, a home inspection can discover major problems that you may not want to deal with. For example, if your home inspector finds that the roof needs to be replaced or the air conditioner is on the brink of failure, you may not want to go through with the deal if the seller will not offer concessions to help cover the cost of these repairs. The same can be said about major foundation problems, a bad plumbing system, or a faulty electrical system.

2. House Does Not Appraise for the Asking Price

Most people buy a home using a mortgage loan to finance the purchase, and doing so will require the home for sale to be appraised. During a home appraisal, the current market value of a home is determined by a professional. If a home appraises for less than you offered to pay, it is not a good buy. You will most likely have to put down a larger down payment to satisfy your mortgage lender, and you will be stuck paying more than the home is actually worth.

3. Not Up to Code

When major improvements or additions are made to a house, everything has to comply with building codes. If you discover that that the seller has done some DIY projects or hired an unlicensed contractor and improvements are not according to code or permitted, it is a good idea to walk away. It is not worth the hassle to deal with the potential problems that can come when unpermitted work has been done in a house. 

To learn more about single-family homes for sale near you, contact a realtor today!