5 Things That Can Go Wrong While Buying a Regina Home For Sale

Regina Home For Sale

Buying a home is both exciting and scary. While there are many things that can go right, there are many things that can go wrong. Being prepared for the things that could go wrong and knowing they aren’t the end of the world can reassure you that you can get through this process successfully! 

1. Bad Home Inspection

A bad home inspection may seem like a deal-breaker but depending on the issue it doesn’t have to be. A buyer has a few options after getting their inspection report. 

  • The buyer can walk away from the home altogether and be refunded the deposit.
  • They can renegotiate the selling price with the seller.
  • They can ask the seller to make a repair prior to possession.
  • They can agree to tackle the issue themselves and move forward with the purchase. 

2. Multiple Offers

In a multiple offer situation, a buyer does not have the same opportunity to negotiate as they would if their offer was the only one. Some important factors a buyer needs to consider as they prepare their offer are:

  • Price - The buyer needs to determine what the house is worth and how much they are willing to spend. In order to get their offer accepted they may need to offer more than asking.
  • Deposit - Buyer's may want to offer more cash in a multiple offer situation. Sellers may see a larger deposit as a stronger offer and believe the buyer is more committed.
  • Conditions - The strength of an offer is not based solely on price alone. Writing an offer with the fewest conditions may be more likely to be accepted. These contingencies include financing, home inspection, closing date, and more. However, the buyer needs to seriously consider the value of having those conditions because the buyer is taking all the risk.
  • Personal Letter - Writing a well-crafted letter to the seller may give the buyer an edge and increase their chances of getting their offer accepted. Some sellers are emotionally invested in their home, and a well-written and heartfelt letter may be enough to win in a multiple offer situation.

3. Difficult or Unreasonable Sellers

Sometimes you find the perfect Regina home for sale and the sellers are just so stubborn you can’t come to an agreement. You may find that the home is listed higher than the reasonable market value and the sellers won’t come down, or you may find the sellers are nonresponsive all together. In times like this, it’s extremely disappointing for buyers who come across these kinds of sellers. Understanding that people all have their own expectations, wants & needs for both buying and selling real estate is important and a buyer and seller may not always meet eye to eye. It’s uncommon for these situations to happen but here I am writing about it, so it must be common enough! 

4. Appraised Too Low 

If a Regina home for sale is appraised lower than the offer price, normally in a situation where 20% or more is being put down as the down payment, there will be an issue with financing. The lending institution will not mortgage a property at a higher price than it appraises for. Buyers have a few options:

  • Renegotiate The Price - If there is evidence that the seller's home is worth less than they thought, they may be open to renegotiating and lowering the price. If not, the sellers will have to take a risk and try to receive another offer from a different buyer.
  • Find A New Lender - Another bank may appraise the property differently and arrive at a different home value. A buyer should only consider a new lender if they have great credit, access to other financing options, or think another lender will better understand the situation.
  • Request A New Home Appraisal - To request a new home appraisal, a buyer will need to gather their facts, strategize with their agent, and talk to their lender. However, lenders do not have to honor these requests.
  • Pay More for The House - If the buyer has the cash then they can pay the difference between the purchase price and the appraised value. For example, if the agreed selling price is $500,000 and the appraisal comes in at $485,000- the buyer can opt to pay in cash that extra $15,000 so that the mortgage amount comes to $485,000. This is not always an option for buyers who do not have the cash for this sort of solution.
  • Walk Away - If all other options have been explored, the buyer may need to walk away from the property.

5. Possession Day Problems

Buyer’s need to be aware they may not get keys at the predetermined time on the possession day. There are a few problems that can occur that can cause delays.

  • Release of Keys - Late mortgage funds, mistakes on documents, or busy couriers and law offices can cause delays on closing day and the release of keys. It is important to have plenty of communication between all parties involved to avoid delays.
  • Walk-Through - The first thing buyer’s should do when they enter their new home is to have a walk-through with their Realtor. This is to establish that all items they have written in their offer are still in place and appliances are in the same working order as when they made the offer. However, if items are not in the same condition or removed, the buyer will need to discuss remedies with their Realtor and lawyers may need to get involved.

Buying a Regina home for sale can be stressful for buyers as they are navigating through a complex and unfamiliar process. I have always said that the quality of your home buying experience comes down to the quality of the people you have working with you. Make sure you have a top-notch real estate agent, mortgage broker and a real estate lawyer to ensure the purchase goes as smoothly as possible! 

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If you have questions or would like to discuss Regina real estate further, please give me a call at 306-552-7047 or fill out my online contact form.

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