Expert: Dick Dennis - 9/29/2008

Question
We signed an agreement for buying a home in cincinnati.we got all the home inspection work done. Our closing date is Nov 14th 2008.  We are first time home buyers. Now looking at the us economy we are kind of scared and confused whether thi sis the right time for us to buy an home. So we are thinking to break the purchase agreement Because of the economy . So how can we do it ? could please tell us how can we do it. Wat do u think about our idea.

Answer
First thing you have to realize, Nishanteeka, is that first-time buyers seem to always feel they made a mistake . . . even when the real estate market is going gangbusters. I feel you are making a mistake if YOU DO cancel the purchase.

One day in the future you are going to look back at this day and feel sorry that you cancelled the purchase. You're just starting out in your family life. You have many years to go. Even if the economy is showing signs of failing, you have to live SOMEPLACE. So, why not live in and pay the mortgage on YOUR OWN home?

Do NOT listen to people in your family or friends who may be advising you to back out of this deal. Make your judgments from people who are well to do. Those are the people who have done well and know when it is wise to buy real estate. I guarantee you that not one well-to-do person would advise you to back out.

Besides you are asking for trouble from the seller of the property and maybe the Realtor. If you do not have a valid reason for backing out (and a poor economy is not a valid one) you may expect to lose your deposit and possibly taken to court. I do wish you well.

Dick Dennis