When Should I Give Notice To My Landlord When Buying A Home?
Buying a new home is a big deal and an even bigger investment. If you are in the process of, or if you have recently purchased a new home, you are well aware. You were probably quite surprised at all that was involved too. Who would have guessed there were so many moving parts (pun intended) involved in buying a new home?
There are also other considerations, aside from your new home, that need your attention. That includes considerations such as when you should give notice to your landlord.
The ideal time to tell your landlord that you have bought a new home is when the contract is signed, and you have the keys to your new home in hand. That will allow you enough time to move and afford your landlord time to prepare. Additionally, waiting is a good safety net if things go wrong before the deal is complete.
It probably isn’t news to you, and you may have experienced it yourself or know someone who has, but home deals fall through all the time. So the wise advice is to slow down and control the excitement of buying a new home before making all the other arrangements. Here are some of the reasons why it is a good idea to wait before telling the landlord you are moving.
The Benefits of Waiting to Tell the Landlord You are Moving
There are several reasons why it is beneficial to wait before informing your landlord of a new home purchase. Those benefits, of course, begin with leaving yourself a safety net.
Waiting protects your safety net
There are more than a few reasons why the purchase of a home can fall through. That also means that if your plans to buy a home go south, then waiting to tell your landlord will ensure you still have a place to call home.
Waiting creates a less stressful move
There are many i’s to dot and t’s to cross when it comes to finding, financing, buying, and moving into a new home. With all those working parts it is also a benefit to have the time to get everything accomplished without the risk of running into deadlines.
Waiting provides time to prepare your new home
In most cases of a new home purchase, the planned buyers have permission to begin preparing their new home. That also means that work like painting and or any repairs or renovations can be done while the home is still empty.
Waiting to give notice can also create a more enjoyable move
Having the extra time to prepare your new home while still having a place to live until the deal closes creates a more enjoyable move too. That extra time while not stressing over their current living situation allows homeowners to handle many tasks. These include scheduling furniture deliveries, getting utilities switched, and other necessities. Having these basic tasks completed beforehand makes the move-in easier and more enjoyable.
What Can Cause a Home Deal to Fall Through?
According to most statistics, an average of about 4% of all home contracts fail to go through. Although that isn’t an astonishingly high number, it is high enough that virtually every house contract goes through a pending sale period.
When the buyer’s offer is accepted by the seller, the home is then listed as sale pending. Some realtors may also use the term “under contract” to refer to this stage. This step of the home buying process typically occurs because certain aspects of the deal still need satisfied or met.
These contingencies of the sale are also the same areas where a deal can potentially fall through. Here are the most common reasons why a deal doesn’t close (and why it is a good idea to wait before informing your landlord of a move).
Buyer inspection discoveries
The investment of buying a home is considerable, and any undertaking of such value requires the highest level of due diligence. When purchasing a home, the buyer must be certain of exactly what they are investing in. During the process of the buyer inspection, the discovery of issues with the home (faulty foundation, bad roof, etc.) can cause a deal to fall through.
Arguably buyer financing issues are the most common reason for a home deal not closing. There are many considerations that go into financing a home, and even a delay in approval from a financial institution can be enough to make the seller move on.
Home appraisal results
In many cases, it takes some time to schedule a home appraisal. In these situations (like most others during the steps of buying a home), the process continues in a state of contingency. Unfortunately, if those appraisal results come back reporting a home as overvalued, it will most likely prevent the deal from closing.
One of the less common problems encountered during the home buying process is title issues. Problems, such as having a clear title, however, will stop the deal from closing dead in its tracks.
Problems selling home
In certain cases and more often than many people realize, one home sale is commonly contingent on the sale of another home. That can actually be an issue for either the buyer or the seller. If the seller is planning on purchasing a new home, but their deal falls through, they will often need to pull out of the sale of their current home.
Classic cold feet syndrome
This isn’t a problem foreign to anyone, and it can also be the reason why a deal doesn’t close. Few things in life are as big as buying a home (marriage, new career), and few things can be as likely to cause cold feet too.
There is a lot to take in and a lot to get done when buying a new home, but it is a worthy investment of your time, money, and energy. And congratulations on your new home.
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