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Red Flags for Homebuyers
Home
buying season is upon us, and while some buyers get caught up in the
emotions of finding their new home, an important part of buying a home is
paying attention to red flags. Red flags are those items that could
potentially cost you a lot in the future, or even in the beginning -
essentially, warnings of a danger or a problem. According to HouseMaster,
a major home inspection company with offices in the United States and
Canada, 40 percent of previously owned homes have at least one serious
defect (housemaster.com). Provided is a list of items and things to
consider or avoid when looking for your next home.
1. You're also buying a neighborhood:
Neighborhoods
are a vital part of the home buying process - make sure you visit at
different times of the day to get a true sense of the neighborhood. Also,
consider trends when looking for your next home. Does the neighborhood
have an HOA? Are the homes in need of repair? Is the neighborhood going
down rather than up-and-coming? What is local crime like? A neighborhood
can be the most obvious red flag for a buyer.
 2. Fixers:
Fixers can be
great deals, but it's important to know how much you're getting into when
you buy a fixer. Do you have a comfortable level with renovations? Are
renovations going to make the purchase not economical? Will they break
your bank? If a fixer will cost you more in renovations than your budget
can handle, or go above what the home is worth, it's a potential red
flag.
3. Issues with a Home Inspection:
A home
inspection is not required to buy a house, but it is always recommended,
as an inspection can shed light on potential red flags. All offers should
be contingent upon a satisfactory home inspection - if there are issues,
you can potentially negotiate with the seller. Also, some issues can
prevent financing for a mortgage. Always get a home inspection, and be
wary of homes being sold "as is."
 4. Additions and Decks:
Are there
additions to the home or property? Do they look like a DIY job? Any work
should be done to code, especially when it comes to remodeling. Additions
that are not done to code can be expensive to fix, and they can
potentially lower the value of the home. If work has been done, you can
contact the county or city for work permits and check if the city tax
records match what the seller claims. If a home has a deck, ask the
seller who built the deck and when it was built. Decks are notorious for
being costly to fix or repair, and there's potential that it will have to
be rebuilt to be fully safe. An unsafe deck, or one that just doesn't
look right, is a definite red flag.
 5. Noticeable Structural Problems:
Always check
doors and windows to make sure they open and close without issue, as they
can be indicators of structural issues below the house. Foundation issues
can be very expensive; look for large, noticeable cracks on the outside
of the house and any cracks in concrete floors where the sides are not
even. Foundation fixes generally cost thousands to fix - unless you have
a large budget for repair work, avoid this big red flag.
6. Pest and Termite Damage:
Pest damage to
homes can be very costly. If the pests have chewed into any studs, the
structure of the home is compromised and can be expensive to fix. If a
home has been inspected and treated for pests in the past, the seller
needs to disclose this to a buyer. Some pest issues will return without
proper treatment and management; be sure to ask the seller if they have
had pest issues in the past.
 7. Water Damage:
When walking
through a property, look for moisture or water stains. With a proper home
inspection, the inspector will look under the house for potential water
issues. Moisture and water can be signs of drainage issues and can lead
to some very expensive fixes. Water issues are a huge red flag when it
comes to finding a home - they can affect the foundation, structure,
roof, and a number of other areas in a house.
8. Faulty Electric and Old Wiring:
Is the home an
older home with outdated electrical? Be very wary of a home with faulty
or inferior electrical work. Older homes with outdated electrical cannot
handle additional electrical work that builds up over the years, and knob
and tube wiring or aluminum wiring found in older homes can be extremely
costly to replace or repair.
9. Asbestos:
Asbestos was
used as an inexpensive fire-retardant material from the 1940s through the
1970s. We now know that asbestos can be extremely detrimental to lung
health. Asbestos was used in blown-in attic insulation, vinyl floor
tiles, some glues and linoleum, window caulking and glazing, roofing
material, HVAC duct insulation, siding material, plaster, fiber cement
siding, some forms of paint, and thermal insulation on basement boilers
and pipes. Asbestos is as much a red flag as mold.
10. Mold:
Mold is a part
of the natural environment, and molds begin growing indoors when mold
spores land on surfaces that are wet. Molds are a health hazard to
humans; some molds produce mycotoxins - toxic compounds - that can lead
to neurological problems or worse. Both asbestos and mold are huge red
flags when found in a home, not only for health reasons, but also both
are notorious for being extremely costly to eliminate. Asbestos and mold
are two issues that should always be addressed by trained professionals
to insure the issues have been properly treated and disposed of.
Buying a
home is an emotional process: red flags are a way to take a step back and
take a moment to truly evaluate a house. The last thing you want to do,
as a homebuyer, is buy something you'll end up hating or regretting. A house
is a huge commitment, and making sure you get the most for your money is
always top priority. Your family and your agent can both help you when it
comes to discussing your dream home - you're not alone.
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