When to walk away from an offer

Sometimes, the best decision you can make as a buyer is to walk away. But how do you know when to take that step? When is a deal too good to be true? With our tips you’ll know what to do if the situation arises and if it’s time to move forward, or walk away.

It goes above your desired price point

As a buyer it’s important to be prepared. Before entering a negotiation, you should know what the desired price you’re looking to pay is, as well as have an understanding of what you’re comfortable with - what the highest amount that you’re willing to pay is in the worst-case scenario. If the price ends up going above what you went into the situation willing to pay, then be prepared to walk away from the offer.

The housing inspection turned up something wrong

Purchasing a lemon could end up causing you years of headaches down the road. If the housing inspection turns up something unforgiveable – such as a structural issue, it might be time to walk away from the offer. Cracks in the walls, and roof or drainage issues can end up costing you a pretty penny down the road.

Mold

This may seem straightforward, but if you spot mold on the property, that’s a huge red flag that it may be time to walk away from the offer. If you suspect that a home that you’re looking to purchase may have a problem with mold, you have a couple of options – walk away, or consider getting a mold remediation company to inspect the mold problem and provide you with an estimate of what it would cost to have the mold removed from the property.

The seller is hiding important information

If you discover that the seller failed to disclose important information about the property – such as cracks in the foundation, problems with the roof, or electrical problems, it may be a good idea to walk away from the offer. This could mean that they seller is hiding other things with the property that you may not be made aware of until it’s too late.

For more tips on real estate investing, visit our website, or contact us at 416-788-6916. Our goal is to educate our clients on how they may achieve financial freedom through Real Estate investing. There are many great and profitable real estate opportunities in the Greater Toronto Area, and we help our clients take advantage of these opportunities through education.