Friday, February 16, 2007

Reneging on a home purchase

My parents got out of their impulse home purchase! Woohoo! I am soo happy. They were going to purchase a 1 bd condo for $377k, the list price was $389k. They had put in an offer before it was even listed in early January. They were set to close in a few more days, had the home inspection, but decided it was an impulse purchase. I think my nagging made them step back and think a bit more before jumping into buying a condo.

Now the place has been listed on the market for a month and there were no other backup offers. I am hoping that the condo is unable to sell for even $377k and will show my parents that real estate is not easy money. And that it doesn't usually sell for list price. This was a 3% discount because they were buying the condo from the seller and the seller's agent WITHOUT an agent to represent them. So basically they were paying full price of the condo less commission to another agent. Not smart, but luckily they did not go through with the deal.

In today's buyers market I think that it would be crazy to not push harder for more concessions from sellers. I also strongly feel that buying without advice is not a great idea. So my parents have successfully avoided a huge financial mistake...YES!

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