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Home Buying Tips: Keep a Backup Plan

By
Real Estate Broker/Owner with MBA Broker Consultants CalBRE Broker #00983670

What are the reasons NOT to get your hopes up too high in the beginning of the escrow?

  • Many transactions “fall out” of escrow and you may be disappointed
  • So you can make a good business decision to cancel your contract if needed
  • Keep a backup plan for the other houses you liked

Many transactions “fall out” of escrow.

Okay, we are now in escrow.  We hope to be closing on our new house in about 2 weeks so we are packing and preparing, and we are starting to get excited.  However, we do not want to get our hopes up too high.  At this point, many transactions still cancel for various reasons.  We don’t want you to be disappointed if, for some reason, you do not get this house.

Be prepared to back out if needed.

Do not become so emotionally attached to this house that you cannot make a good business decision to back out if you find out that it has major problems.

If the house has major problems revealed by a home inspection, you may have to make the decision to cancel the purchase and back out.  So do not become emotionally attached to this particular house.

Keep a backup plan for the other houses you liked.

At this point, you probably stopped looking at other houses for sale.  However, you still need to make a note of other houses you liked, just in case.  Remember what we advised about having plans B, C, and D.

Throughout my many years of experience helping first-time homebuyers, I have seen plans change at a moment’s notice.  That is why it is always best to be prepared. You have heard the saying: Plan for the worst, but hope for the best. That is great advice to heed.

Read more in our book, "Buy Your First Home", http://tinyurl.com/nrvmgc7.

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

 

Posted by

Regina P. Brown
Broker, Realtor®, M.B.A., e-Pro, GREEN
California DRE # 00983670
www.CalCoastCountry.com

                

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Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Regina - I like that saying, "Plan for the worst, but hope for the best". It is unfortunate, but contracts do fall out of escrow for a variety of reasons, and home buyers need to be aware that it can happen.

Nov 25, 2015 12:11 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Regina great advice, since we are knowledgeable of our own markets, we need to manage the expectations of our clients and forewarn them of the potential scenarios, Endre

Nov 28, 2015 01:59 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Regina, I just closed a property where the first offer fell out, and my buyer had a second chance! 

Nov 28, 2015 11:06 PM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Regina

It's always a good idea to have a plan B. Great post . . . . I bookmarked the post.

Good luck and success.

Lou Ludwig

Nov 29, 2015 12:29 PM