You don’t want to end up regretting your purchase, so be on the lookout for these red flags.
- Buying a home can be a major financial and emotional decision.
- There are certain red flags that should prompt you to pass on a property.
- Some big red flags include an overpriced home and unpermitted work.
If you’re buying a home, it’s easy to act based on emotion and move forward with making an offer if you fall in love with a particular property. But you should remember that buying a house is a huge investment and will likely come with a large mortgage payment, so you don’t want to rush into the process of picking a property and end up with a place that has major issues.
The good news is, by looking out for a few key red flags, you should be able to avoid a mistake that could come back to bite you. Here are five big signs that suggest you should probably walk away from a home you’ve been looking at.
1. A price well above comparable properties
Overpaying for a home could have serious long-term financial consequences. It can be more difficult to get approved for an affordable mortgage if a home is priced too high. And you’re more likely to end up being unable to sell the home at a profit — or even for enough to pay off your home loan — if you overpay for it in the first place.
To make sure that doesn’t happen, you’ll want to compare the price of the house you’re considering to similar properties in the area. If your home is priced well above competitors and it doesn’t have something special that justifies the added cost — such as an amazing water view — then you should probably steer clear.
2. Unpermitted work
If you discover that any of the renovations or changes the prior owners have made to the home were done without permits, it should likely lead you to walk away immediately. If the local building code enforcement office where you live discovers unpermitted work at any point, you could face fines, penalties, and a reassessment of your taxes — even if the upgrades were done by the prior owners.
Unpermitted work may also not have been done to current safety codes. You could be forced to redo the work — …….