I announced a couple weeks ago that we had bought a new house. That announcement was two weeks into our process -- well enough in that I thought it was a "done deal." It wasn't.
On Monday we received an inspection report the seller was responsible for (they were supposed to do it within 10 days of the purchase agreement being signed but they waited until the last minute) that had one item in particular that we couldn't live with. So we canceled the agreement and are staying put for now.
I'll blog more on the process and what we learned along the way -- when I find time to sort through it. For now, I just wanted to get you all up to speed on our situation.
And just so you know, while it is a bummer that we won't get the house we liked so much, we believe that everything happens for a reason and that what's ahead of us is even better than what we hoped to have at this new place.
I commend your patience on this. So many buyers become emotionally invested in a particular house and lose their objectivity. Not you.
Posted by: Mr. ToughMoneyLove | October 09, 2008 at 12:56 PM
Yep, its certainly a bummer when you go through the whole process of getting the house that you really want only to have it crumble at the last minute. Been there, done that. I agree with your sentiment about things happening for a reason. I also think that buying one's owner occupied house should not be an emotionally driven decision. Of course you have to like your neighborhood, your neighbors, the house's style etc., but ultimately emotions should be left out of the equation in my opinion. Emotional attachment to the buying decision often leads to poor choices. Anyone else have a thought on this?
Posted by: Scott | October 09, 2008 at 12:57 PM
Just curious - what was the one thing which was the deal-breaker?
Posted by: Steven | October 09, 2008 at 01:10 PM
I'm curious too. I may be looking for houses soon and I'd like to know what one thing would cause someone with vastly more experience to withdraw.
Posted by: Noah | October 09, 2008 at 01:30 PM
Sorry that wasn't clear. I'd like to know what -I- should also use as a dealbreaker, since I trust your instincts in these matters.
Posted by: Noah | October 09, 2008 at 01:30 PM
If I were them, in this market, I would bend over backwards to fix the problem on the report and get you back to the table! Who else are they going to sell to?
Posted by: Chris | October 09, 2008 at 01:42 PM
Too bad about the house. At least it wasn't something like the second credit check some lenders are doing now before finalizing the sale. I know someone who is selling his house, and a week before the closing, the lender ran a check on the buyer. The buyer's score had dropped a couple points since the beginning of the process, and the lender put a stop to the deal.
At least you ended the agreement on your own terms.
Posted by: Miranda | October 09, 2008 at 01:49 PM
I have found that no deal is finished until the Close of Escrow. Especially in the current market. In fact, just 2 days ago I wrote an article about how to handle getting a buyer on a home. Especially in the current market where banks are scared to loan money, it can be rough to sell a house. Your example seemed like a disagreement between the buyer and seller. I've heard of horror stories of loans getting pulled out from under the buyer just a day or two before the Close of Escrow. That really sucks.
Posted by: WiseMoneyMatters | October 09, 2008 at 01:51 PM
Steven/Noah --
What makes one buyer uncomfortable and not willing to buy is not an issue for another one, so there's no standard set of rules. You have to know what will and won't work for you and stick to your guns.
In our case, the water to the house was well water and it tested above acceptable levels for some contaminants. Some (most?) people would be ok with these since there are systems to handle much of them. But we weren't comfortable with any proposed solution, so we stopped the process.
Posted by: FMF | October 09, 2008 at 02:02 PM
Thanks for the update. My in-laws have a well, and it gives them nothing but trouble. I'd probably have rejected it as well.
Posted by: Steven | October 09, 2008 at 02:05 PM
Better luck next time, FMF.
As for the robots out there that say don't get emotionally attached - I think that is nearly impossible to do after you find a home that really feels "home-y". The key is to know the cost/benefit and be ready to walk if that isn't in balance. I'd be pretty upset to move to a new home I wasn't emotionally invested in or "loved".
Posted by: Kevin | October 09, 2008 at 03:16 PM
Sorry to hear it, FMF.
Posted by: Sarah | October 09, 2008 at 03:26 PM
I'm sorry to hear it too. FWIW, we have to make about 5k in repairs cited in the inspection report, radon gas being the big one. We're not hesitating to do it. We want the deal to go through.
Posted by: rwh | October 09, 2008 at 03:46 PM
Good call - you can buy it a lot cheaper in 6 months!
Posted by: ABCs of Investing | October 09, 2008 at 10:33 PM
Consider yourself lucky on not getting the house. It is financial suicide to buy a rapidly depreciating asset like a house, especially since so many sellers are in complete denial about the financial situation at hand. I'm sitting on a couple hundred thousand dollars and will wait until greedy sellers get real about the current real estate market.
In times past, buyers had to write sellers letters and bid $50K over asking to get a chance to buy a house. Karma is a bi***!
Posted by: Marko | October 12, 2008 at 12:00 AM
I ran into this on a house we bid on, but eventually found our perfect house and we moved in on October 1st. I felt that it was just a step towards something better, just as you do. Don't worry, another house will be even more perfect for you :)
Posted by: Lady Tawodi | October 16, 2008 at 12:51 PM