6 Red Flags for Home Buyers
Buying a home is one of the greatest financial investments you can make, so you'll want to make sure you’re getting the best value. It’s important to take a close look at potential problems that might turn your new home into a money pit.
Knowing what pitfalls to look for, where to find them, and what questions to ask before you submit an offer can help you avoid making a decision you’ll regret. Here’s what red flags every home buyer should look for when purchasing a home.
Oddities in the listing
Some red flags are visible in a home’s listing well before you ever set foot on the property.
If a listing includes only photos of a home’s exterior or a small selection of rooms, there may be cause for caution. It could mean a home is in foreclosure, and in some cases, banks will not allow potential buyers to view the property before purchasing. In other instances, there could be a major defect in part of the home.
Make sure you're looking for homes on reputable websites. Homes sold by Realtors will appear on the multiple listing services and will be cross-posted on real estate websites like Zillow, Redfin, Trulia, and Realtor.com.
Homes for sale by owner (FSBO) are more likely to be listed on less-vetted marketplaces, such as Craigslist. However, some of the best for sale by owner websites are still go-to real estate sites like Zillow and Trulia.
Pricing
Take note if a home is listed well below market value, and pay attention to changes in the listing, such as a significant change in price. Homes listed below market value might be a scam, and a home with a large price drop could have a mounting list of problems that have made it unappealing to other buyers.
You can get the most accurate home value assessment from a professional appraiser, but there are many online websites that show you a home's approximate value. Each site has its own algorithms, so you'll want to visit only the most accurate home value websites.
Changes in the neighborhood
One of the most important features of any home is its location, so take note of the neighborhood and nearby properties.
Before putting in an offer on a home, research the neighborhood. Check local crime reports to find out how it compares to other neighborhoods in your community. If you’re buying a home with school-age children, learn more about the schools. Most of this information is available online.
It may also be a red flag if you see a large number of homes for sale in a small radius. A mass exodus of homeowners could mean there are issues with zoning, tax rates, crime, or more. It could also be a sign of environmental factors at play, such as a lack of privacy, too much noise, or sound pollution.
Structural issues, poor maintenance, and damage
Unless you excel at home improvement projects, look for signs of structural impairment, poor maintenance, or other damages that could cost you a fortune in future home repairs.
Foundation issues are some of the most costly repairs for homeowners. Telltale signs that a home’s foundation may be in trouble are jammed doors and windows, sloping floors, or cracks in walkways and stone. Foundations can be fixed, but it will cost a pretty penny and often require you to vacate the home during repairs.
Signs of water damage include ceiling stains or freshly painted ceilings. Although it’s normal for sellers to paint a home before listing, it may be a sign they’re covering damage if they only paint one wall in a room.
You can save yourself future problems by finding out when the owners updated the HVAC system and if a home’s appliances have warranties.
As-is properties
When a seller lists a home “as is,” you can usually count on it being a fixer-upper. Buying a fixer-upper comes with some benefits. You often pay less per square foot than you would with a home in ideal condition. But before you scoop up a bargain, take time to study the home’s flaws so you'll know if you have the budget or expertise to make the property your home.
Pests
Be on the lookout for telltale signs of pests, such as mouse or roach traps. Not only do they indicate the presence of pests, they might point to more issues with the home, such as gaps in the plumbing, windows, and floorboards.
Other warning signs to consider
In addition to red flags, there may be less serious, but still troublesome, yellow flags that shouldn't be ignored.
Does a home have a lot of clutter? Don’t assume the current owners are hoarders. There could be a lack of storage.
Is the house filled with air fresheners? While it’s normal to have a few, an overwhelming number could mean a seller is trying to mask odors like mold, mildew, and pet odor.
If you're unsure about a home, it might be time to talk with a local real estate expert.
Buying a home is a big responsibility, and you'll want to learn a few questions to ask a realtor before hiring one. But with a trustworthy agent on your side, home buying doesn’t have to be scary.
