Navigating Home Buying: Overcoming Deal Breakers and How to Fix Them

Your Home is Under Contract—What's Next?

Congratulations! You've put your dream home under contract, and the excitement of moving in is building. But before you can turn the key to your new front door, there's a journey ahead filled with important steps: home inspections, appraisals, financing paperwork, and contingencies that are crucial for a successful closing.

Let's walk through what you can expect in the coming weeks and how to navigate each step with confidence

Embracing the Due Diligence Period

Time to "Look Under the Hood"

Now that you have an exclusive agreement with the seller, the due diligence period begins. This is your opportunity to thoroughly assess the property to ensure it meets your expectations and has solid structural integrity. It's also the time to secure your financing, which typically takes 45 to 60 days—a window that allows for meticulous attention to detail.

The All-Important Home Inspection

Uncovering the Hidden Details

Home inspections have become more comprehensive than ever, integrating advanced technology to detect issues that might have been overlooked in the past. Within the first 7 to 14 days, you'll want to hire a certified home inspection professional to evaluate:

• The Main Structure: Assessing the foundation, roof, and overall integrity.

• Pest Inspection: Checking for termites and other infestations.

• Water Quality: Especially important if there's a well on the property.

• Septic System: If the home isn't connected to a public sewer.

• Radon Levels: Ensuring safe indoor air quality.

Remember, some inspection results may take longer. If needed, request an extension within the due diligence timeframe specified in your contract.

The Power to Walk Away

During due diligence, you have the right to terminate the contract for any reason—or no reason at all—by providing written notice. This period is your safety net, allowing you to step back if significant issues arise or if circumstances change. Always discuss this option with your real estate agent, as regulations can vary and may have evolved.

Addressing Inspection Findings

Negotiation is Key

If the inspection reveals issues, you have options:

• Request Repairs: Ask the seller to fix specific problems.

• Seek Financial Credit: Negotiate a price reduction or credit to cover repair costs.

• Accept As-Is: Proceed without changes, understanding the risks.

• Terminate the Contract: Walk away if the issues are deal-breakers.

Aim for a mutual agreement that satisfies both parties. Remember, you've chosen this home for a reason, and most issues can be resolved with open communication.

Understanding the Financing Contingency

Securing Your Loan Approval

Your ability to purchase the home hinges on obtaining financing. The financing contingency, typically lasting up to 30 days, protects you if you're unable to secure a loan. Stay proactive by promptly providing your lender with all requested documentation to avoid delays.

Appraisal Matters

The property's appraisal must meet or exceed the purchase price. If it doesn't, you have the right to renegotiate or terminate the contract. Often, sellers are willing to adjust the price, understanding that future buyers may encounter the same appraisal outcome.

Preparing for Closing Day

Final Steps to Homeownership

With contingencies satisfied, it's time to prepare for closing:

• Transfer Utilities: Schedule the switch to your name on closing day.

• Change of Address: Update your information with the postal service and notify banks, subscriptions, and service providers.

• Final Walkthrough: Inspect the property to ensure it's in the agreed-upon condition. Verify that agreed repairs are completed and no new damages have occurred.

If issues arise during the walkthrough, address them before closing. Once the paperwork is signed, resolving problems becomes more challenging.

Remember, every great journey starts with a single step. Your dream home is waiting—let's make it a reality together.