Common reasons buyers give to not buy a home

October 8, 2020/Scott Sheldon

How can you determine what is the right house, the right area the right location, and the right house for you and your family? Here are tips to consider as you’re out there in the marketplace looking at houses with your real estate agent…

What type of house are you looking for? Are you looking for a single-family residence, a multi-family property, brand new construction Etc? Let’s just assume for our purposes we’re talking about a single-family home a resale home or a brand-new home. A brand-new home will probably have very little problems associated with it but is not free from manufacturing defects. Little odds and ends after you buy a brand-new house from a builder are to be expected. Inevitably, when you buy a house from a builder because the house is brand new it’s probable that you might end up paying an additional premium for a brand-new house because it’s specifically brand new. So that leaves us with a resale home.

If you’re looking for a resale house price and payment is a driver of your decision-making.  Resale homes may need work in the form of TLC. This means a new roof, for example, home Inspection issues, termite issues, and the list go on. Homeownership is not for everyone, but for those that are willing to stomach the process, it can be a very sound and prudent financial move. So let’s say you’re looking at a resale home, you love the location, you love the neighborhood, and you love the house. Then you discover that the house has a shot roof which is going to cost about $15,000 to fix.

Many times repairs to the house such as a roof might need to happen, but they might not need to happen for years down the line which would afford you and your family time to move in get acclimated to the home, and then determine which way you want to handle it. Forgoing a house due to needing a new roof for a good price, in a good location potentially could be an opportunity lost.

Maybe your real estate agent can take into consideration the cost of the roof and negotiate the cost of the roof from the sale of the house? When you buy a house replacing the roof at some point down the line anyway is inevitable. So if you reside yourself to only looking at houses which don’t need a new roof example or the don’t have termite pest issues fr example you are taking a very broad approach to give you the maximum opportunity and you’re narrowing yourself out of the market.

Just know in a real estate transaction the deal must be beneficial for all everybody. Everyone has to walk away from the deal feeling like they’ve got something. Be open-minded to houses that need work because let’s face it a house is probably priced competitively or shall we say lower if the house needs work meaning of the house didn’t need the work and the house had a brand new roof and didn’t have any of those challenges in terms of repairs in TLC needed then the purchase price would be higher. A higher purchase price contains a higher payment which means the house may be unattainable. Buy a home within your budget which may need a little bit of work. You can make those repairs to the house increasing your sweat equity over the course of time and do very well for yourself financially so long as the house is in a good location for you.

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When buying a home, it’s natural to want the lowest mortgage rate possible. But sometimes, chasing a slightly better rate from another lender—especially after your offer has already been accepted—can backfire in a big way. Let’s walk through a real-world scenario. You’ve got an offer accepted on a house. You’re working with a lender who has you approved, documents in underwriting, and a 21-day close of escrow in place. Everything is moving forward. Then you hear from another lender offering a rate that’s 0.25% lower, with slightly better closing costs. It’s tempting. But before you make a jump, here’s what you need to consider. Switching Lenders Comes with Time Costs When you pivot to a new lender mid-contract, they’ll need to: Re-underwrite your entire loan, Order a new appraisal, Disclose and sign new loan documents, Submit the file for final loan approval, Schedule and fund closing—all over again. This doesn’t happen overnight. Even in ideal circumstances, the new lender is likely going to need at least 25–30 days to close. If you’re in a fast-moving or competitive market, this is a real problem. Most sellers won’t grant a contract extension just because you’re switching lenders. So, what happens next? A Contract Extension Can Jeopardize Your Deal Asking for a contract extension means the seller must agree to delay closing. But that delay introduces risk—especially if the seller has backup offers or simply wants certainty. They may not grant the extension. Or worse, they could cancel the deal outright and take another buyer’s offer. Even if the seller agrees to extend, your earnest money and negotiation power could take a hit. And for what? A slightly lower rate that might save you $50 to $75 a month? Mortgage Rates Aren’t as Far Apart as You Think Here’s the truth: all mortgage lenders get their money from the same place—the bond market. The pricing differences between lenders usually range from 0.125% to 0.25% in rate on any given day. If one lender seems to be offering dramatically better pricing, the first thing you should ask is: How? Head over to FreddieMac.com and check the average 30-year fixed rate posted weekly. This is one of the most reliable benchmarks for where rates truly stand in the market. If a lender is quoting you a rate that’s well below that average, ask for the details: Are they charging extra points? Is this a teaser rate with a prepayment penalty? Is it based on a different loan product or risky structure? Often, what sounds “too good to be true”… is. Consider the Bigger Picture Think long-term. If you’re financing $600,000, a 0.25% lower rate may reduce your payment by roughly $75/month. But what if you lose the house and have to start over? That monthly savings doesn’t mean much if you’re outbid on your dream home or lose your deposit. Also, remember: you’re not going to keep this rate forever. Today’s homebuyers typically refinance when rates drop by about 0.75% or more. So if rates fall within the next year or two, you’ll likely be refinancing anyway. Instead of paying extra points now or risking the entire deal for a minor monthly savings, it may be better to accept a slightly higher rate—knowing you’ll refinance when the time is right. The Real Risk Isn’t the Rate—It’s the Delay When shopping for a home loan, don’t just ask, “What’s your rate?” Ask: Can you close on time? Is this rate sustainable or based on hidden costs? Will switching lenders delay or jeopardize my contract? A home purchase contract is a binding agreement between you and the seller to perform within a set timeframe. If you can’t meet those dates because you're chasing a slightly better rate elsewhere, you may want to reconsider if now is the right time to buy. Final Thoughts Yes, interest rates matter. But execution matters more. Before making a switch mid-transaction, talk to your lender. Have an honest conversation about pricing, timelines, and strategy. You might find that staying the course, securing the house, and planning to refinance later offers a better path to financial security. Want to Know Your Options? Let’s compare rates and strategies the smart way—without risking your dream home. 👉 Click here to get a custom rate quote today.

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