Walk Away or Deal

[Felicia Walker]

I’m torn. I finally am under contract for a property that is in a small town, but has a new and growing casino as well as a popular mountain area… Its also known for hiking trails and scenic views. I was lucky enough to briefly speak with a planning director who described (in a nutshell) that the town is about to have major developments. Meanwhile my property under contract, built in 1936 that I just received the inspection on, comes back with costly foundation repairs needed …. Nothing urgent… but estimated at $25k. The inspector said nothing is need just yet… and the repairs (helical piers) could be done in 4 stages. My heart sunk and I’m torn…. Even after a second opinion with basically the same info… do I walk away from the deal? Or do I look at the deal for the overall  picture of what could be??? This is an “As Is” sale. I’m torn.

[Travis Timmons]

It's only an as is deal if the seller is confident that they have other options at or close to what you are paying. You're not playing hardball or giving a disrespectful offer by asking for the $25k (or whatever amount you land on) or walking away. It's the offer that you can make right now. Submit it and see what happens.

You have to start ownership of a property from a position of financial strength. The only guarantee when buying a place is that you are going to spend a pile of money directly after purchasing it. You may feel like you are missing a great opportunity, but the downside risk of not having any/enough reserves is the greater risk here. Losing hurts you more than winning helps you on this one.