10 Red flags to Look out for When Purchasing a Home

Purchasing a home is one of the biggest investments (if not the biggest investment) a person can ever make. For this reason, buyers need to be extremely vigilant throughout the house hunting and home buying process. Always be on the look for red flags before purchasing a house, one for example is if a seller is a little too eager to sell the house. Real estate can be expensive and making a mistake in it can be very costly and regrettable.

1. The price is a little too good to be true

The most obvious real estate red flag is a listing price that is simply too good to be true. This usually indicates that the sellers are extra-motivated, which should certainly make you wonder why. While it’s possible they need to sell quickly for financial reasons, personal reasons or job relocation reasons, it’s also possible that the home is simply not in good condition. Be sure to ask your Realtor to get to the bottom of the too-good-to-be-true price in question.

2. Look out for foundation cracks           

Virtually all poured concrete foundations will crack at the one time or another, but hairline cracks are not an indication of a problem. If a crack is wider than 1/2 inch, however, it’s a good idea to have a foundation contractor examine the area. This also holds true for cracks that appear to have been recently patched. Large cracks can indicate an unstable foundation.

3. Water Problems

Does the idea of living in a house on the water appeal to you? It should except you are hydrophobic. However, having loose water in your house can be a recipe for disaster. As bad as this might sound, it is even worse in a situation where the water is unseen. The danger of having water in your house is that it ends up wrecking havoc. Most often than not, by the time you witness the physical damage, it is already too late. This is why it is important to check for any signs of water intrusion into the house.

Ensure that the real estate agent you are working with has a good eye for spotting signs of water intrusion in a house. He/she should ideally know where to look during the inspection. If there have been previous signs of water entry into the home, this should be spotted during a home inspection. If a house is prone to flooding because of its location, this is something you want to know. Nigeria has witnessed several cases of flooding.

4. The sellers haven’t lived there long

Thanks to numerous online real estate marketplaces, buyers can now learn about a property’s history (when it was last bought and sold) with ease. If the home’s sellers have only been living in the house for two years or less, then it is perfectly reasonable to question their short tenure. After all, why do these sellers want to move again so soon? Don’t be afraid to ask the listing agent why the sellers are moving. In addition, if the home has had many owners in the past, this could be another red flag that something is wrong with the house.

5. The listing doesn’t include many photos

Are there only a few photos of the home included in the listing? Are certain rooms or areas of the home left? Pay attention to this important real estate red flag. If the listing doesn’t include high quality photos, buyers should question why that is. We recommend asking your Realtor to find older photos of the home from previous listings before touring the house. If certain rooms were left out of the listing, make sure to ask the sellers, “why?”.

6. The home has a strange smell                    

 You know what they say: where there’s smoke, there’s fire. If you happen to pick up on a home’s less-than-desirable odor, pay attention. This questionable trait could mean that the house hasn’t been well maintained. Unpleasant odors can indicate mold, water damage, pests, a poorly ventilated home, plumbing issues and HVAC issues.

7. Impatience on the part of the real estate agent

When a real estate agent seems too impatient to close in on a deal, it is a potential red flag in that real estate transaction. You should take a step back and reassess the situation. Try to thoroughly investigate and be sure that you are not going to be duped.

8. Legal checks are avoided

For large real estate transactions especially, you need the services of a lawyer. When a real estate agent insists on not having a lawyer involved, be assured that this is a red flag in that real estate transaction. They tell you that they have everything sorted out and so, you really don’t have to worry.

These are smooth talkers and if you are not careful, in a carefully planned and swift move, you are already giving in to their unreasonable and visibly fraudulent suggestions. Beware!

9. There are a lot of other homes for sale on the same street

Happen to see a lot of other “For Sale” homes on the same street? There may be a reason for that. A mass exodus from the street is most certainly a real estate red flag, if there ever was one. When multiple neighbors have listed their home, make sure to take note and ask “why?”. This could indicate that something is amiss – or it could just be a coincidence. Either way, get to the bottom of it before purchasing a home on the street.

10. The Agent tries to waive home inspection.

This is a sure red flag sign. Regardless of whether or not you spot these red flags, it’s important to never ever waive a home inspection. These in-person inspections are conducted by certified home inspection professionals and provide a written report to buyers concerning the condition of the home they plan to buy. This way, buyers are aware of any and all issues prior to purchasing the home. If the inspection report does find issues with the home, then buyers can decide if these issues need to be addressed before purchasing the house.