5 Red Flags All Buyers Need to Know When Going to Home Showings

Buying a new home is a huge investment, and owning a home costs money, too, in upkeep and maintenance. When current owners fail to maintain the home, problems start. Most people are forthright and honest, but sometimes, owners slap a coat of fresh paint on a problem and call it fixed. Or, the problem may not be readily apparent to the untrained eye.

No one wants to spend thousands on a home purchase only to discover after the closing that it has problems unnoticed in the walkthrough. These problem homes sometimes have red flags that potential homebuyers don’t realize are warning signs of structural issues or other problems. Missing these red flags when buying a house can be a costly mistake to tune of thousands of dollars.

Learn what these warning signals are so you can look out for them when house hunting or ask for professional inspectors to review the concern.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Too Good To Be True Prices

A top red flag when buying a house is the extremely low prices. While this may seem like a great deal, low prices can be a sign that something is wrong with the home. After all, why would the homeowner take such a cut to their profits if the home was fine as-is? Their low price signals they know the home needs costly repairs, and the only way they’ll get a prospective buyer is by selling under market value.

Unusually low prices are common among fixer-upper homes. When a home is marketed as a fixer-upper, the buyer goes into it knowing it needs a lot of work to get it to their ideal or even a livable state. The difference between these two cases is that the buyer knows why the home is priced the way it is. They walk in the door expecting larger issues and hopefully have budgeted for the repairs.

Everyone Is Leaving at Once

It’s normal for a large neighborhood to have multiple listings simultaneously, especially during the most popular selling times or if it is a new neighborhood under development. However, home buyers should be able to tell when the number of listings becomes abnormal. If many people are all leaving the neighborhood at once, it can be a sign that something is driving everyone to leave.

For example, if the city has announced a new motorway or busy shopping center close to the neighborhood, all the extra noise would be a big factor in making people want to move. It may be an area where crime rates are changing for the negative. Perhaps a major employer has shut down, impacting the local economy and leading people to seek jobs elsewhere.

Buyers should ask their real estate agents to investigate future construction projects in the area if it seems that many people are leaving. You can also examine population growth rates, changes in crime rates, or shifts in the housing market. For instance, has the number of homes for sale increased more than in other similar neighborhoods? Are homes on the market for months, when the region has a different average days on market?

The Home Has Pest Issues

When a buyer goes to a home showing, they should always look for signs of an insect infestation. Infestations can be notoriously difficult to get rid of once they’ve established themselves in a home, and they’re also extremely expensive to fix. Infestations will have signs that a buyer can look for, including:

• Shed skins
• Broken egg shells
• Bad odors
• Fecal matter
• Noises, such as crickets chirping
• Wood dust in corners, under eaves, along windows, or outside the home along the foundation.
• Rotting or wet wood under eaves, window sills, wooden decks, patios, or siding.
• Mud tunnels around the home foundation

Buyers should also look for the insects and not just what they leave behind. With insects like cockroaches, seeing a few in the home can be a sign of a much larger problem that can’t be seen as easily. Cockroaches and termites make their nests in walls and other locations that people don’t easily access.

Common insect infestations to look for if you’re buying a home in the South or a wet environment:

• Cockroaches or palmetto bugs
• Termites
• Ants
• Bedbugs
• Bees/hornets

Note that a home inspection may notice the potential presence of pests, but it takes a pest inspection to determine if the damage is old or new.

Wall Cracks

Not all cracks are bad. Hairline cracks happen as foundations and homes settle over time. The natural heating and cooling of our homes through the seasons causes plaster to swell and shrink, creating small cracks around drywall seams and joints. But if you’ve got an older home, a basement, or live in a sinkhole-prone area, pay attention to wear and how these cracks appear. Get a professional inspection if you see any of these:

• Cracks wider than 5mm
• Diagonally running or staircase-styled cracks
• Cracks over door frames
• Cracks you can see light through
• Uneven flooring

You may also notice a musty odor, as cracks can lead to water intrusion, especially if they appear in a basement. Any work to remedy unstable foundations is a major repair.

Water Stains

Repairing water damage can lead to extensive repairs. You may see the rotten wood along the outside, or the stain along the walls, but what about what you can’t see? A leaky roof can cause water to run down the inside of walls, creating electrical issues, too. Then there’s the potential for black mold and mildew if it’s not remedied correctly.

When buying a home in a flood zone, you should be asking about any prior floods and how high the water intruded into the home. But even if your home is not, a home can still have water damage from poor drainage or leaky pipes. Be alert of a musty smell when touring inside the home. Sometimes sellers try to disguise foul odors with air fresheners. Peek under sinks for water stains or signs of repair. Look for signs along the eaves and window frames for water intrusion.

Outside, look at how water drains around the home, including the gutters and the foundation grade. You want water to run away from the home. Another sign of poor drainage is water pooling around the foundation or in the yard. Just for roof damage, especially around flashings and seams. Check for foundation cracks as you walk around the exterior.

Homebuyer Red Flags

Buying a new home is an exciting time, but if home buyers aren’t careful, they can end up in a home with many problems. Ensure your money is well spent! Keep in mind these red flags when buying a house to avoid expensive repairs.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Updated August 2024