You signed a contract to buy a house. Now you have to really make up your mind if you want to go through with the deal. Are you ready to make that happen?
After signing a contract on a home purchase, the buyer usually has 10 days to 2 weeks in an option period. They can walk away from the contract during that time without penalties. During that time, the buyer should get the house inspected. This is a check for the disclosures the seller may have made.
Appraisal — Once you have agreed on a price, the lender will send an appraiser to determine the price of the house. If the appraisal comes in below the agreed upon price, the buyer will need to come up with more money at closing or the seller will have to reduce their price. If the seller had multiple offers, they could go with their second choice.
Mortgage payments – Once you have selected a house and the option period begins, the lender will ask for documents to finalize your loan. You should get a very idea of how much you will be paying per month. If that amount is over your budget, it may be a good idea to find a different house you can truly afford.
3 reasons people walk away from a home purchase during the option period
Too many repairs – While all houses need repairs, you have to decide what is too much. Should you allow the seller to make some of the repairs? Should you get estimates on the repairs and do them yourself? If the carpet needs replacing, you can choose the flooring type and colors to fit your lifestyle. Perhaps the latter is the best option. That way you can ensure the repairs are done to your satisfaction.
Buyer’s Remorse – When making a large purchase like a home, it is common to second guess your decision. You need to consider all the time you spent finding this house and negotiating for the right price. If there is no solid reason for backing out, then it may be best to go ahead with the purchase. If you back out of this one, you are going to be spending time looking for another house. The amount of time could be significant especially if it is a seller’s market where houses are not plentiful.
Life Changes – like the loss of a job. A pre-approval on a loan is just an initial surface look at your as a credible buyer. Once the contract is signed, the lender takes a more in depth look at your financial situation. Other reasons may be a family member moving in and now you need a bigger house.
Contact Kinship Real Estate, your home buying friend when you need to sell fast. We can make a fair cash offer or discuss other options so that you can sell your house as-is to us. We can close in less than 30 days. You don’t have to pay Realtors commissions.
Kinship Real Estate is positioned to help you make the sale of your house potentially seamless. Feel free to contact us. If we can’t help your directly, we may just be able to refer you to resources that can help you.
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