What was the final straw where you knew (or told your client) to walk away?
What are some red flags people should look out for?
Here are my thoughts...
Walk-away:
First and foremost, always get a professional inspector/engineer to inspect the property before you sign a contract. If the seller or seller’s broker won’t let you... walk away.
If there are substantial issues found from the report and the seller is unwilling to address them... walk away.
If you are buying a condo or co-op and the managing agent won’t let you see the meeting minutes, condo docs or answer a standard questionnaire...walk away. There could be something wrong with the building.
If the property has a funny smell (musty, cigarette smoke, etc)...walk away. If will be hard to get it out or it could be a sign of a big expense problem.
If you are receiving “undue pressure” from the seller’s broker, walk away. They could be hiding something.
Finally, if your intuition says “something isn’t right”...walk away. Trust your instincts.
Caution: If there is a lawsuit with the property (mainly new condos and its developer)...strong caution. Most banks won’t do mortgages in buildings with lawsuits.
If your bank won’t lend in the building or property...caution. See if other banks will lend.
If the property does not own the land (a land-lease)...strong caution. When it comes time to resell, many buyer’s attorneys tell them not to buy.
Final note: A wealthy property owner told me once... "I made my fortune, not on the deals I made, but rather, the deals I walked away from. By trusting my intuition, I saved myself from headaches and bankruptcy. There is always another deal out there."
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