Looking for a Home? Here Are the Potential Red Flags to Look Out For

Going on a home tour is one of the most exciting aspects of home buying. However, getting caught up in the excitement and overlooking details that could cause problems later on, is easy. You’ll want to do your homework before making an offer, whether it’s the location, a too-good-to-be-true listing price, or a red flag with the home’s condition. Keep these potential red flags in mind as you look for your next house to make sure you get all the benefits of what could be a potential issue or significant expenditure in the near future.

There Are Only a Few Photos of the Interior of the House

A listing with only a few (or no) photos of the home’s interior is a major red flag. Instead, the listing may include additional photos of the home’s exterior or the surrounding area to entice home buyers. Because every home seller wants to present their home in the best possible light, a lack of interior photos may indicate that the home needs to be in better condition.

The Price Appears to Be Too Good to Be True

When house hunting, home prices can be a deal breaker. It’s usually out of the question if it’s out of your price range. If you see a home priced below market value, this could indicate a problem with the house or location. So, before you get too excited about a lower mortgage payment, ask your real estate agent for more information about the home’s pricing and their insights. You may discover hidden issues, such as needing a new roof or HVAC system.

The House Has Been “Re-Listed” on the Market

Of course, there could be various reasons why a property was removed from the market and then re-listed. The previous buyer’s financing may have fallen through, or the deal may have fallen apart after the seller and buyer could have disagreed on terms following the home inspection. Alternatively, the house could have been on the market for a long time, and the home seller decided to wait for demand to return. In any case, why was the house relisted? Was the house on the market for an extended period of time, and if so, why? What prevented the buyers from making an offer?

Everyone in the Neighborhood Is Selling 

It’s great to have a lot of options when house hunting, but it could be a red flag if fewer homes are sold in the same neighborhood. What motivates people to sell their homes? Is the neighborhood rezoned for a different school district? Is it close to a busy highway? If you notice a lot of homes for sale, ask your real estate agent if this is a cause for concern in that area.

It’s a Foreclosed House

A home bought as a fixer-upper and flipped isn’t necessarily a red flag that should send you running for the hills. When house hunting, you should take extra precautions if you come across a recently-flipped home. Make sure to get more information on the house’s upgrades. Were only cosmetic changes made, or were the plumbing, HVAC, and even the “bones” of the house upgraded? Check to see if the sellers have permits for any home improvements required; this will ensure that the upgrades were done correctly and following the code.

The House Is Being Sold “As-Is”

When a house is sold as-is, it is sold in its current condition, and the seller is not required to make any repairs or improvements. You must conduct thorough research before agreeing to purchase an “as-is” property. Before making an offer, consult a real estate attorney and examine the deed and land records for red flags. Then, before closing, have the home inspected by a professional to identify potential issues.