What are signs of a bad real estate deal?

On Behalf of | Mar 19, 2020 | Uncategorized |

Buying a new home can open up an exciting new chapter in your life. This is why you want to make sure you are purchasing a quality home without underlying problems. However, some people rush into a purchase and find out after moving in that their dream home was not what they thought it was.

It is possible, early on in the sales process, that you might discover signs that a home may possess some problems that would deter you from buying it. Per Business Insider, here is a look at three signs you might end up with a bad real estate deal.

Cheap prices

You might think you have found a great deal on a home, but sometimes a house is cheap for a reason. The house may have structural problems, tax liabilities or outstanding dues from associations. Additionally, the home may reside in a neighborhood with crime problems, high unemployment, or flood risks. You might also find boarded up or run down houses in the area, which may make it hard for you to sell your new home later on even if you improve it.

Discouraging inspection

You have a right to know the true state of a home before buying it. However, if a seller discourages you from inspecting the home or tries to rush you through the sale process, the seller might have something to hide. Some homes, despite appearing to be in good shape, may hide significant problems like mold or rot that could cost you a lot of money to fix. Having an inspection contingency in your contract may protect you from buying a house that contains problems.

Dubious history

You should also understand the history of the home. For instance, if the home required a lot of repairs, you should know why and if the repairs are likely to stand up. Subpar repairs may mean you will have to pay for additional fixes later on. You might also want to know if the house was ever the scene of a crime. Some homes also sit on the market a long time or have high turnover rates. All of these might indicate problems with a home that you do not want to deal with.