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5 Indications You Should Walk Away from a Deal

By
Services for Real Estate Pros with TheHousingGuru.com

There are times when buyers and sellers can not reach agreement, and if you appear to be in such a situation, don’t be afraid to walk away. There is no one single house for you, even though the one you have chosen may seem that way.

                                                                                                                            

•The seller won’t budge on price and it’s still above the comps in the area. Occasionally, you encounter sellers who are too emotionally attached to their home to be reasonable in pricing it. These sellers are really not serious, and until they are, it’s best to avoid them.

•The seller is unwilling to negotiate on anything. Some sellers are just not ready to sell. When you encounter one of these, it’s best to look elsewhere.

•The inspector’s report describes what appears to be a serious problem and you don’t fully understand what is involved. Unless you are an expert or have a good understanding of how to resolve the problem, such homes should be avoided. The risk is too great.

•When the mortgage numbers keep growing. If the mortgage numbers keep escalating—interest rate, projected payment, down payment required, closing costs—it’s generally best to withdraw your offer. Don’t become so emotionally involved in making the deal that you overlook common sense.

•Though you can’t identify the reason, you have a nagging feeling that something’s not quite right. This is just based upon your “gut feeling.” If something keeps you questioning the transaction, perhaps it’s time to listen. Don’t confuse this with simple “buyer’s remorse,” an irrational reaction based in fear, which often occurs when making large transactions.

 

Remember, don’t agree to a price higher than your comfort zone allows, and don’t give in on stipulations that are important to you. In the end you’ll probably regret it.

Maria Morton
Platinum Realty - Kansas City, MO
Kansas City Real Estate 816-560-3758

John, I agree wholeheartedly with #5.

#4 should be looked at with your mortgage consultant. If the numbers are changing, or hidden costs begin to pop up, perhaps you want to contact another local mortgage lender for a second opinion. Or, ask your realtor to recommend one or two.

For #3, an expert opinion is called for. By someone who does the type of work to correct the problem the inspector found. If the company doing the inspection also does the work required, hire another inspector.

#1 & 2 really need to be evaluated on a case by case basis with the buyer's agent.

Nov 03, 2008 01:45 PM
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Thanks for your input, Maria. I agree with your points. My intention was to present "red flags" that are overlooked too many times.

Nov 04, 2008 03:50 AM