Your bid was accepted by the seller and 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 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.
5. Unsuitable neighborhood
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 is a deal breaker.
4. Neglected pool
Even well-maintained pools can limit prospective buyers in many states and require lots 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-pools 10 years or older may be in need of major repairs-and whether you can afford the time, as well as financial, commitment.
The house looked fine on the outside 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. A lot of pest control specialists offer warranties, but the stress of having to deal with the concern in the first place can be a major deal breaker.
2. Structural problems
With the amount of inventory right now, when potential structural problems show up on the home inspection report it is time to move on. Cosmetics like flooring, wall color and kitchen appliances are easy to fix, but structural flaws will either mean significant work and continual problems or tearing down the home and rebuilding. For those unprepared to take on heavy financial burden, structural deficiencies come in as the number two deal breaker.
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. Low appraisals become a deal breaker when the seller is unwilling to sell at the appraised price and the buyer cannot pay the difference. In some cases, the realtor(s) can call the appraiser to discuss how they assessed the home and decided the appraisal value, but appraisals are rarely amended to a higher price.
“Buying a Home with Termite Damage.” Orkin.
Melinda Fulmer, “Is it a pool or a money pit?” MSN Money.