Knowing When To Back Out Of Property Deal
As exciting as the process of buying a home can be, sometimes, way down the line, you start to feel as if the entire deal just isn’t right. As a buyer, this kind of gut feeling can be rather confusing and stressful. But as experience has probably already taught you, not listening to your gut might be a huge mistake. So, if and when the entire process begins to feel as if it is backing you into a corner you do not want to be in, then maybe you should think about backing out.
But, how do you know when to back out of a property deal and how do you do it without burning too many bridges? Here are a few tricks you can use to either totally back out of the deal of delay it long enough so that the seller moves on.
When can you back out of a property deal?
When it has appraisal issues
This has to be one the most convenient reasons for backing out of a property deal. Almost every real estate deal comes with the contingency that the inspection and appraisal results must be satisfactory. The beauty of it all is that ‘satisfactory’ is a very relative term. In many cases, the resulting property value often comes to something lower than the stated price. In this case, one of two things has to happen:
– Either the seller reduces their price to match the appraised value, or
– The buyer agrees to pay the asking price out of pocket.
At this point, things can get very sensitive and no one would blame you should you walk out of such a deal.
When the inspection reveals more problems than anticipated
This is a straight forward ‘get out of property deal’ card. Should the inspection reveal more problems than were initially stated or than you can comfortably accept in your new house, you can simply back out and say you are looking for something that will require fewer repairs and cost much less when doing so.
When you have financing issues
As much as it may be your dream home, if it is going to cost you both kidneys and an arm, you should really think about backing out of that deal. In many cases, real estate transactions are backed by financiers who give you a mortgage at a stated interest rate. In some of these cases, you may find that you do qualify for more money but it would mean that the belt would have to be tightened just a bit more than is comfortable.
DO NOT buy a house that will run you into the ground in terms of mortgage payments. Should you find that the seller is asking for much more than you are comfortable with, even after negotiations, then you can, and should, easily back out of that deal.
The trick is knowing when to back out and when to stick to your guns. If you have the slightest of verifiable fears about buying that house (verifiable like ‘inspection results’) then you can and should back out of that property deal.