Losing the home to another buyer: Usually by the time you've made an offer on a property, you've walked through it a couple of times, considered its potential for your future abode and found it worthy. You might even have started to imagine how your chaise lounge will look beneath that picture window and daydreamed with your spouse about swimming in the underground pool, but there's a reason for the myriad of cliches that go something like "don't count your eggs until they're hatched." Even in a down market people are buying and if you think the property is a great deal, someone else probably does as well. If your offer gets outbid, take a deep breath and recognize that this home simply wasn't meant to be, keeping in mind that until the houses closes, you might still have an opportunity to purchase the property if your heart is really set on it. Regardless, pick yourself back up and start looking again. Chances are you will find an even better option, perhaps around the next corner.
Your loan falls through: Whew this is a painful one and something that many home buyers experience at some point. You're weeks out from closing and the loan suddenly falls out. Before you throw yourself off a bridge or storm the lender's office, recognize that loans fall through all of the time and chances are you can repair the situation. First, contact your lender and find out what's going on. Is the lender closing their doors? Get approved for a loan through another bank. Did the home appraise too low? Negotiate a new purchase price with the seller based on the appraised value. Is your down payment too low? Investigate down payment assistant options in your area and consider where you might pull out extra funds - perhaps from a 401K or a loan from family.
The inspection uncovers some issues: This can be hugely disappointing especially if your home loan is compromised by the cost of repairs. Get multiple estimates on all of the repairs that need to be made and then consider your options. If you or someone in your family is handy, you may be able to make repairs yourself for significantly less than contractor prices. However, you will need to consider how much work you're willing to put into the home. You will also need to negotiate with the sellers for either a price drop or a certain amount of cash placed in escrow to cover repairs.
If you want to buy a home in East Lansing or the Greater Lansing area of Michigan, I can help you find properties in your price range. Feel free to contact me at MyRealtorRob with all of your home buying and selling questions.
It is true that buying a home is serious business, and some people do have a tough time dealing with it, especially if it is their first time. Encountering a counter-bid from other buyers can certainly ruin what you planned. So, it would be a smart idea to have back up plans and options for you to get the house. You might regret letting the opportunity pass by just because you did not plan ahead.
ReplyDelete@Sara Owens