5 Red Flags for Home Buyers

When you start the home buying process, it can be easy to see the world through rose-colored glasses. The process is so exciting that every home seems chock-full of potential, even the ones that might be more of a lump of coal than a diamond in the rough. So how do you tell the difference between the two, and save yourself a negative experience down the road? Here are five potential red flags for home buyers.

1. A Location In A Dicey Neighborhood

If you love a home, it’s easy to overlook the community. Unfortunately, it’s much easier to make improvements to a home than it is to a location. With this in mind, make sure there are good schools nearby and that the crime rate isn’t higher than what you’re comfortable with. This will help ensure you’re happy in your home for years to come.

2. A Price That’s Too Good to Be True

Why are the previous owners selling the property for a fraction of what it’s worth? Is there a catch? Have you ever had that gut feeling that something isn’t right? Let’s face it, there are a lot of deals on the market that seem affordable at first, but only get more expensive as time goes by and hidden issues start coming to light.

If it seems like the property is too cheap, do your research. Hire a housing inspector and find out what comparable properties have sold for in the area. Something might be rotten in the state of Denmark.

3. The Seller Is Wary of a Home Inspection

Regardless of the property’s condition (renovated or newly built), a thorough home inspection is essential to assess future costs and potential issues. If your seller is worried about it though, there might be something he or she isn’t being honest about. Don’t move forward with the sale without a thorough inspection.

4. The House Is a Foreclosure or Short Sale

While foreclosures can be a great deal, they can also be a massive project that many new buyers aren’t ready to take on. Learn as much as you can about the home’s value and the work required before you make an offer on the property.

5. You’re Rushing into the Purchase

Rushing into a purchase can be as dangerous as choosing the wrong property. Think about these things: Are you financially ready to buy the property? Can you afford maintenance, taxes, and the mortgage? Is it a place you can see yourself living for ten years? Even if you choose a beautiful home with few issues, it won’t mean much if you’re struggling to make the payments each month. A sense of unease or anxiety about a home purchase is a major red flag to watch for.

Smooth Sailing for New Home Buyers

It’s easy to get carried away by the excitement of purchasing a new home. When you do, though, you might miss red flags you should be seeing. By watching out for these five things, you can ensure a safer and more satisfying home buying process.