Facebook Pixel

Knowing When to Walk Away from a Home Purchase

By Mike in Buying Tips with 0 Comments

Buying a loft or condo in downtown San Diego can be an emotional and exciting experience, and it’s easy to get swept up by your excitement when you fall in love with a place. Even after you have found the spot of your dreams and made an offer, there are still some situations in which you should consider walking away from the purchase. Here are some red flags that indicate the purchase is not in your best interest.

1. The property is appraised well below your offer.

What happens when the condo or loft you love is appraised for well below your offer and the seller refuses to drop the price? A lender will not finance the property for more than the appraised value, which means you need to either pay the difference or walk away. Think twice before overpaying as you will be underwater right away and it can hurt you when you try to sell.

2. You’re at the very top of your price range.

You should know what you feel comfortable paying before you shop for a condo, loft, or penthouse for sale in downtown. Still, it’s easy to find yourself bidding against other buyers and pushing yourself higher than you feel comfortable paying. Don’t get swept up in a bidding war without considering your comfort level. If you do not feel you will be financially secure with how much you will need to pay, take a step back.

3. The property failed the inspection.

Some issues that may turn up during an inspection are an easy fix. Other issues should give you serious pause, such as termites, foundation issues, and mold. These problems can be very expensive to fix. Not only will these problems make it difficult to obtain financing, they can also deplete your savings and leave you upside down on your dream home.

4. You are making too many compromises.

You will probably find yourself making many compromises as you search for a new place, as few buyers find a condo with everything on their wish list. If you have been searching for some time, it may seem easier to just give in to put an end to the search, but it’s a good idea to think twice before compromising on the biggest items on your list. Otherwise, you may find yourself with problems after you close.

If you’re not already, consider working with an established real estate brokerage in downtown San Diego that specializes in the neighborhood. Doing so will ensure you work closely with an agent who knows the ins and outs of the area and will advise you on making the best decision that meets your needs and wants.

For more information, give us a call at (619) 649-0368 and schedule an appointment today. You can also check out our inventory online. ')}