Your offer was accepted by the seller and your dream of home ownership is on the horizon, but what if the roof needs to be replaced or there are foundation problems? When purchasing a home, deal breakers are different for each person. For example, someone who has the resources may take on a project that others think is too expensive or time intensive.
A home inspection will reveal any possible issues and give you all the information you need to make an informed decision. Here are five of the top reasons you may back out of a deal in progress.
1. Low Appraisal
Especially in this market, many buyers do not consider the thought that the home they have bid on may appraise under sale price (especially when so many people are paying well above asking to get a property). Low appraisals become a deal breaker when the seller is unwilling to sell at the appraised price and the buyer cannot pay the difference.
2. Structural Issues
This is usually the biggest deal breaker for me. I will always advise my clients to walk away from potential structural problems. Cosmetics like flooring, wall color and kitchen appliances are easy to fix, but structural flaws will either mean significant work (and expense) and continual problems or tearing down the home and rebuilding. If you move forward despite the warnings of the home inspector, be prepared to take on a heavy financial burden and cross your fingers that the problem is not as “bad” as the inspector thinks it could be.
The house looks fine on the outside. Beautiful in fact but it turns out that termites are eating away at the structure. Termites can be an ongoing problem. Even after being exterminated, termites frequently return to properties when prevention methods are not utilized, and if carpenter ants are introduced, though they will eat the termites, they eat away at the wood. For us, this is just one stress that a new homeowner should not have to deal with. Walk away.
4. Neglected Pool
Even well-maintained pools can limit prospective buyers in many areas as a pool requires plenty of maintenance and upkeep. A neglected pool, however, can cost upwards of $20,000 to get up to code. Expect to replace tile, plaster, decking and purchase a new pump. Resurfacing a pool averages $8,000 and monthly pool services add up to several thousand dollars a year. To determine whether a home’s pool is a deal breaker, find out how old it is before you buy. Pools that are 10 years or older may be in need of major repairs.
5. Bad Neighbourhood
You jumped into negotiations on a house, but on your second walk-through you notice the neighborhood is not desirable. Maybe you were looking for a family-friendly neighborhood, but it turns out the house you bid on is in a high crime area. Whatever the case may be, an unfavorable neighborhood should be a deal-breaker. Not only will it compromise your ability to enjoy and feel safe in the neighbourhood, it will also hamper the appreciation on the property in the long run.