Buying a home is seen as an amazing event in someone’s life. For many it is a milestone. One might imagine that buying a home is full of picking out everything you love, and growing on that. After all, those horrible looking houses are only for movies and professional flipper right? Wrong. Home buying nightmares a real thing. There red flags, hints and further things to look out for when looking for a home to purchase.
IS THIS HOUSE TOO GOOD TO BE TRUE?
When house hunting, it’s essential to look beyond the house alone. Is the price too good to be true? It’s very possible to see that home that seems to be too good to pass up. The pricing in the area is worth so much higher than the house’s asking price. Why is this house so cheap? It is not necessarily a bad thing if a home is at the good price. It can be quite alarming. A house is seen as an investment, so why is the asking price so far below market value? A good step to take is to hire your own inspector. Do not necessarily go with the real estate agent’s choice. Look at reviews online, and possibly ask reviewers any questions you may have. Next is to accompany the inspector everywhere he/she goes. Ensure every light is being turned on, ensure attention to detail is occurring, and ensure every possible question to be ask is asked. Ask yourself, is his house staged to hide something or to make it look move in ready?
Is this house still looking great? Look beyond just the home. Location could be an issue. The house may be parked by a school, so there is traffic always parked at the house, or maybe the house is by the night club. A hidden indication could be the neighbor’s habits. This could mean the neighbors are noisy, or have a cockroach infestation. It is important to talk with neighbors to gather information on the specific residence and the other neighbors.
UNDERSTANDING THE RISKS
Unforeseen circumstances do occasionally emerge. It is not something someone wants to hear with possibly a thousand invested in getting under contract for the home they may have wanted, or that extra room in the house is actually not permitted and would have to be torn down. These issues could be issues that arise after the final purchase of the house has occurred. Something could not be permitted, or the house could be sitting in a dangerous area. The solution? Ensure gap insurance is part of the title insurance coverage. This insurance will cover any quick issues that would happen in the event of a fallout with the property.
KNOW WHAT YOU ARE GETTING INTO
You may be that individual that loves a challenge. A “fixer upper” is what has been on your mind so you can put your own twist on it. An important rule of thumb, is to ensure the property permit enable you to do the renovations you choose. A local real estate agent, who is an expert in the area, and a permit runner can offer specific and accurate guidance on issues with permits, and what could be a budget hold up.