3 Red Flags To Avoid When Buying A Home

Buying a home is more than just buying a place to live – the right purchase can be a great financial investment. Of course, knowing what to look for and what to avoid can be complicated especially if you have never purchased real estate before. With this guide, you will learn about a few red flags to avoid when buying a home.

Price Drops

Some price drops are warranted. For example, if the seller needs to move into their new home or is relocating, dropping the price for a quick sale may be necessary. However, if the seller has dropped the price of the house significantly or multiple times, it may be a red flag.

If you are interested in a house that has had a significant price drop, work with the real estate agents to do some investigation. In many cases, the big drop in price may occur because the seller found an underlying issue that will require expensive repairs. If the seller's agent is not disclosing any information about the price drop, be sure to hire an inspector who can fully evaluate the house and surrounding property.

Stigmas

If there are any historical or psychological stigmas associated with the home, the property may not be a wise investment.

It is not required to disclose that a person died in the house if they died of natural causes. Certain states, but not all, have legal requirements where the owner must notify agents and potential buyers that a death occurred. For example, in Georgia, it is not required to disclose that a person died of homicide or suicide in the house.

A house with a certain stigma may still be appealing and a good buy for you and your family. Unfortunately, the stigma may become a problem in the future if you ever decide to sell the house. Therefore, you will need to determine if the risk is worth it.

Neighboring Issues

The home you are interested in may be a great buy – with all the features you need at the price you want. However, there may be neighboring issues that can greatly affect your home, making it a bad investment.

When considering a house, be sure to take a good look at the neighbor's houses. If they are in poor condition, run down, or abandoned, the appeal and value of the property you want to buy will be negatively affected.

Also, if there is a high crime rate in the neighborhood or the street your home is located on is too busy with traffic, you may want to consider a different home in a different neighborhood. Contact a real estate agent for more help.