When you make the decision to buy a California home, you have undoubtedly done some significant saving, researching, and debating. Buying a home seems to make the most sense from both a practical and financial standpoint. Depending on the circumstances, it may not always be the best decision to buy a home. Read on for warning signs that you should wait to buy your California home.
It’s a Seller’s Market
If you hope to buy a California home, you may not want to search when it’s a seller’s market. If you buy in a seller’s market you could end up paying far more than the asking price for a home. You may have to get creative to keep up with the competition. Many buyers end up sacrificing contingencies and the home inspection in order to buy a home in these types of markets. In essence you could end up paying way more for less in a seller’s market.
The Home Is Overpriced
If you’re looking for a home and are paying top dollar for a subpar property, you may want to walk away from buying a California home. Many homebuyers end up going way over budget when buying a home. Buyers forget about all of the additional costs and fees that go into buying a home. These costs include insurance, HOA fees, repairs, utilities, and taxes to name a few.
The Home’s Title Can’t Be Transferred
The title of a home is one of the most important parts of purchasing a property. If there are any problems that come up in the title search, the property cannot be legally transferred to a new owner. This is one reason why homebuyers purchase title insurance. This protects both the buyer and the lender in the event that the clear ownership of the home cannot be established. Most mortgage lenders won’t allow you to buy a home without this crucial insurance.
Issues With The Structure Of The Home
In California, you definitely don’t want to purchase a home that has any sort of structural issues. The home inspection will check out all aspects of the property including if the home has a sound structure. If any structural issues are discovered, you’re going to want to either do some serious negotiating or walk away from buying the property.
The Appraisal Is Low
A low appraisal can signal trouble for a California property transaction. Mortgage lenders won’t actually give you a loan for the amount offered on the property; they work on the amount that a property is appraised for. Should you choose to continue with the property transaction, you’ll need to come up with the remainder of the cash that’s owed on the property yourself. You’ll want an appraisal contingency in your contract to help protect you in the event that this happens.
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