Red Flags When Buying a Home

You may have found the “perfect” home in your eyes, but don’t be blinded by love. Keep some real estate red flags in mind when you go house hunting – you don’t want a home you will regret buying. WARNING: Remember to think twice about buying a home when you see these signs:

You may have found the “perfect” home in your eyes, but don’t be blinded by love. Keep some real estate red flags in mind when you go house hunting – you don’t want a home you will regret buying.

WARNING: Remember to think twice about buying a home when you see these signs:

Neighborhood

You want to buy into a neighborhood that will retain its value. How do you know? Here are some tips:

  • Lots of “For Sale” signs, lots of rentals, and lots of foreclosures could mean it’s not a stable neighborhood and owners want to get out if they can. Foreclosures and rentals could mean you’ll see less maintained and more unkempt property, which drag down values.
  • If it’s a transitional-type neighborhood, make sure it’s an up and coming one and not declining. Sometimes it’s hard to tell by just looking so your real estate agent can go over current sales activity to give you a more complete picture. Are prices going down or up? How long are properties on the market? Are homes selling for more than the asking price?

Home Inspection

Hire a qualified home inspector to examine the home carefully to see if there are any structural and maintenance issues. Some are hidden and hard to see at first so that’s why you want an inspector before you buy. However, you’ll need to decide if it’s worth the time and money to fix, or if it’s time to say good-bye.

  • Lack of maintenance in general could be a red flag that the home hasn’t been properly taken care of for many years and that major issues – such as water damage — could be lurking. That’s when due diligence is especially needed during an inspection.
  • Some issues are typical for the age and location of your home and not the sign of poor construction. You may not mind a typical fixer-upper in a certain neighborhood that has “good bones,” but you do want to steer clear of a home that has too many issues but isn’t really that old.
  • Do-it-yourself additions or any DIY work that isn’t up to code. If the addition looks awkward and cheap, it probably is and could be detrimental to the home when you want to resell. Or, you’ll need to factor in the cost and time to tear down and rebuild properly.
  • Termite infestation can wreak havoc on a home. Determine how bad and how much it will cost to fix and prevent in the future.
  • Moisture in the basement can mean two things: the home’s grading has some seepage issues and you’ve got the potential for mold. Usually the basement will smell musty if this is the case. Mold is a serious issue and can cause health problems if pervasive so tread carefully!
  • Water marks on the ceiling or walls could signal a leaking roof, gutters rusting, or faulty plumbing – all leading to wood rot and other possible destruction. All can be fixed but you’ll need to determine the extent of the damage.
  • Cracks in the wall and sloping floors point to possible structural and foundation issues, which can be costly depending on the age of the home.
  • Toxic materials in homes built before 1970 such as lead paint or asbestos (found in some building materials) can be a major problem. Factor in containment and professional replacement costs before you buy!
  • Faulty and outdated wiring can be a serious fire hazard. Inspectors should check for overloaded circuits and proper grounding.

Hidden Problems

Sometimes you’ll walk into a room and feel like something is not right. Be a detective and examine the home carefully when looking for these signs:

  • Just one freshly painted wall could be hiding mildew, mold or water damage.
  • Too much air fresheners or scented candles could be masking a strong odor from pets, smoke or musty mold.
  • An oddly place rug or piece of furniture could be hiding damaged floors or carpeting.

All of these are just warning signs to make you step back and thoroughly go over the pros and cons before buying a home. Some issues are just not negotiable and you should walk away. However, consider any concessions and if you can negotiate on price to get a home you will love with its warts and all.

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