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Home Buying 101: Red Flags to Watch Out for in Buying a Home

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“If you have not found it yet, keep looking. Do not settle. As with all matters of the heart, you will know it when you find it.” –Steve Jobs

One of the most significant milestones you will ever encounter in your life is to buy your first home.

In this regard, it would be natural to feel psyched and excited about it. However, while this might be an exhilarating prospect to look forward to, know that buying a home, is first and foremost, an investment—a significant one in fact. With this in mind, it is best not to let the feelings of excitement and enthusiasm overwhelm you to the point wherein they cloud your judgment. In any case, if you are scouring the real estate market for potential homes whether that may be a condo unit in Arca South or elsewhere, here are some red flags to look out for:
Psychological Stigmas

Consider psychological stigmas such as death, violent acts and the like to be disqualifiers when it comes to creating your final list of homes. You may not be superstitious nor do you believe that any malevolent spirit might be lurking, but you might be experience a lot of difficulty when it comes to selling the home in the future. Any psychological stigma associated with the house can have huge implications on its future value and would significantly affect the demand for the home.

Litigation Issues

Any property whose ownership is still being contested in court should be a big no-no in your list of prospective homes. After all, you would not want to be saddled with a lawsuit the moment you move in. In this regard, it is best to check for previous or pending lawsuits on a property you are considering. Not only would this be a way to arm yourself with information, but it can also be an avenue to gain leverage in negotiation.

Price Drop

Price drops happen every now and then in order to entice buyers to make an offer for the home. However, while small price drops can easily be overlooked, crazy price drops are suspicious and would be an immediate red flag. Before you start making an offer, you need to dig a little deeper and find out why the price has dropped significantly. Is there a pending litigation as regards the property? Is the home’s foundation deteriorating? Whatever the case might be, it is your responsibility to find out.

Random fresh pain

Sure, fresh paint would add allure and can immediately enhance a home. However, while painting your walls for a home sale is recommended, painting over small areas on a ceiling or a single wall is not. In fact, it would suspiciously look like a red flag. Why cover only one part of the ceiling? Or why this one wall in particular? It might be that the seller is trying to cover up a problem which should be a major cause of concern.

Neighboring Properties

The properties surrounding your home can greatly affect its resale value. How they are maintained and how they are presented would play a significant role on the future resale value of your home. In this regard, do not only check for your own home when you do a grand tour. Check to see the condition of the nearby properties. Is the lawn manicured or completely overgrown? Do the other properties look inviting as well? Or are they in stark contrast to the property you are considering? Remember, while you can change the home and develop it into the home you wish to live in, the neighborhood is beyond your control. If you are looking to live here for a significant number of years, it is best if you observe the area first. The same goes if you intend to sell the property in the future.

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