Seven Red Flags for Home Buyers (And an Update on Our Home Search)

Kiplinger lists seven red flags for home buyers as follows:

• Poor water pressure. Aside from issues of comfort and convenience, low water flow may indicate plumbing problems, such as corroded pipes that will need to be replaced down the road.
• Ceiling stains. Something’s leaking.
• Troublesome doors. If you have one bad door, it may simply have been installed incorrectly. But more than one may indicate a serious structural issue, such as a foundation that has settled or framing that is deteriorating.
• Overloaded electrical outlets or lots of extension cords.
• Exterior features that slope toward the home. A porch, patio, driveway or grading that slopes toward the home all but guarantees water in the basement.
• Odors. Cigarette smoke and pet odors can be hard to get rid of. And if a home smells too clean -- heavy with the scent of cleaning products (especially bleach) or plug-in deodorizers -- the seller may be trying to cover up an odor, such as mold or urine.
• Synthetic stucco siding. This must be installed precisely or else moisture will be trapped behind it, resulting in mold and decay.

A few thoughts here:

1. Some sellers don't get how important these are. We've seen many homes with one or more of these problems and the sellers are either oblivious to the sort of impression they leave or they think buyers are idiots.

2. Don't count on your real estate agent to point out problems like these. In my experience, agents will actually work to downplay these issues with comments like, "Oh, that's very common" or "You shouldn't worry about that" or "You'll only need to do ________ (something easy) to fix that." Don't believe them.

3. Notice how three of these deal with water damage (and the results of water leakage). Water is one of the most destructive forces to your home -- if not the most destructive.

As an update for those of you following along, we've all but abandoned the idea of moving to a new home. We started the process with the intention of only moving if we found the exact right fit (within reason, of course.) After three years of looking, it appears that we won't be able to find a home we like in the location we like with the land we like for a price we like. We're still keeping our eyes open (our agent sends us email updates now and then), but at this point the idea of a move is all but over. Instead, we're focusing on a few upgrades to our current home to make it an even better place to live.

Comments

[Patty]

I felt like that about a year and 1/2 ago and then.... when I least expected it on an outing again with the realtor - I found my 'new" (to me) home. It worked out well, and within five weeks I had purchased the place.

Very good notes - I'd also add - look at the window frames, if there appears to be water spots, etc., this could be sign of bad windows as they may pick up condensation. At least we do this here - we do not buy a house until the buyer hires a firm to do a home inspection. My inspector found a bad garage door, chimney needed cleaning, problem with the furnace, and a bunch of misc items. It was really good to have him do this. I learned alot - it's like a crash course on the new place!

Good luck on your search :)

[Jeff]

I agree that your RE agent probably isn't going to help you find problems with your prospective home. They have a vested interest in getting you to buy the home. It's crucial to understand that your agent works for him/herself more than s/he works for you. In light of that, I'd recommend that you find your own home inspector, attorney, etc. instead of taking your agent’s referrals.

[Old Limey]

Back in 1977 we were ready to move up and have a larger home built in a more prestigious area about 7-8 miles away. I was all for it but my wife balked because it would mean that our three children would have to go to a different school district away from all of their friends. I tried hard to persuade her but in the end we compromised by deciding on a tract of fairly new custom homes less than a mile away. Homes seldom came on the market there so we engaged a nearby Century 21 realtor to watch the area for us.

We had one data point, we had looked at a home in that tract but it had a pool, was a corner lot, and had an asking price of $150K, but we particularly did not want a pool or a corner lot and there were other features about the house that we didn't like.

One day at work I received a call from my realtor telling me that she had just received a call from a couple in the tract that had an almighty row and had decided to sell their home right away and get a divorce. I called my wife and then told the realtor that we would be there in about 20 minutes.

The home was on the next street over from the one we had seen, exactly what I wanted, at the bottom of a quiet court, with a huge lot, including one area that would be perfect for my vegetable garden, and with an asking price of $107,000. My wife gave her OK as long as we changed some cosmetic things like landscaping, carpeting and draperies. We made a full price offer that was accepted and everyone signed on the dotted line.

The next day our realtor came under fire in her office for setting too low a price and other realtors came in with much higher offers but it was too late. The sellers were uncooperative, removed some items that should have stayed, and even after we closed escrow and received the keys it was another day before we could enter the home because of two very unfriendly German shepherd dogs in the back yard.

The lesson here is that if you are selling your home, don't do it on an impulse and be very wary of accepting the sales price recommended by your realtor because it is in their interest to set a low price, close the deal ASAP, and not share their commission with another realtor. Do your homework and get an appraisal before deciding upon your sale price.

[Marc]

Unless you are paying the real estate agent, the agent is working for the seller. The money has to come out of YOUR pocket, it can not be part of the commission from the sale (seller pays the commission). Never trust a real estate agent (unless you are the seller). Only trust the people that you hire, for example a home inspector.

[bobsmith]

also, don't buy the house if it is on fire. Thats a sure sign it is a bad deal.

[Tina Fortune]

Great information. I built my home last year (in FL) and am so glad because I was too nervous about purchasing another persons home. As a single mom of 3, I just knew I didn't need the headache. I have a friend purchasing a home right now though and she needs this. Thanks!

[Financial Samurai]

FMF - It might not be the seller's fault. Perhaps your budget is too low?

I've actually never had any of these problems with the homes I've searched. What is your range?

[Joe]

That's a nice, short list of deal-breakers there. I'll have to keep them in mind when I'm out looking around.

[Texas Wahoo]

While these issues raise red flags, they may not be deal-breakers because they can be fixed. If you're buying a 100 year old home, there will likely be some settling, even if the foundation is great.

[Aljon]

bobsmith,

crap!! why didn't you tell me this before i bought my house? its too late now.