When would you back out of a deal?

[Nicholas Glatter]

Real quick and easy here. What would be a reason for you to back out of a deal during due diligence? Example: Foundation issues, electrical, plumbing, crazy neighbors, etc. What’s the line you aren’t willing to cross when it comes to buying a property?

[Anson Young]

Nicholas,

As they say "price cures all", any of those issues can be dealt with at the right price.  I mean, the house could be so bad that it needs to be torn down, but if the seller is selling the property for land value, you could knock down the house and build a new one for the right price.

Typically, for me, it comes down to condition vs price, and the seller not accepting a lower price to account for the things found during due diligence.

There of course are other specific examples, like buying a condo or townhome only to find out there is a special HOA assessment coming for $50,000 per unit, etc.