Buying a new home is an exciting time. From the very first moment you see the home you want to make an offer on, you are emotionally attached. The first time you walk through its rooms, you imagine your furniture there; you decorate the spaces instantly in your mind. You can see your family living there happily year after year. Even before the ink dries on your offer, you are planning improvement projects.
Yes, it is emotional. Yes, it is exciting. But what if something goes wrong? Should you blindly hold onto a home and follow through with the transaction just because you love the home? When should you back out of purchasing real estate in Toronto? The following 5 are red flags that you should pay special attention to:
1. You should seriously consider backing out if there is debt attached to the house. Back taxes and some liens are inherited by the purchaser. You could end up paying more for your home than you bargained for.
2. If there is serious structural damage to the home, you might want to rethink your offer. Some foundation problems are very expensive to fix. Although rare, some homes have to be torn down due to structural issues that cannot be fixed.
3. When you purchase a house, the house is not as important as the neighborhood you buy in. You should always purchase a home in a good neighborhood where property values are rising. Housing prices in impoverished neighborhoods steadily decline. If you purchase such a property, your home will be worth less in the future than it is now.
4. You should always purchase a home where you will have room to grow. Choosing cuteness over space could end up being the bane of your existence later on down the road. Remember, you can always decorate your home to suit your style. On the other hand, it is difficult to add more space to a home and lot that is cramped and limited.
5. It is highly advisable to purchase several professional inspections before you purchase real estate in Toronto. If any of the inspections come back with negative results, you will have a difficult choice to make. You will either have to repair the issues yourself, ask the seller to repair them or back out of the deal.
Once you are emotionally attached to a home, it can be very difficult to call off the transaction. But don't try to fool yourself. If you can envision a future where you will regret going through with the purchase, back out. There are too many homes on the market. You will find something else. There is no reason to get stuck with something that is less than perfect.
And don't worry about the legalities of it. There are clauses on every offer that give you a legal way to back out of the contract. If you're unsure, ask your agent.