Monday, June 30, 2014

Home Buying Red Flags

Many owners are anxious to sell their homes. In the rush to sell, there will always be those owners who do not disclose all the problems the property may have. Perhaps they want a quick sale, or a better price, or maybe they simple were not aware of the problems in the first place. Whatever the reason, it’s up to you, as the potential buyer, to spot these problems.

Hiring a home inspector might seem like a good idea, but unless you’re very wealthy, you simply can’t afford to hire an inspector to look at every house that might catch your eye. You can, however, educate yourself. If you know what to look for, you’ll be able to weed out the more damaged homes and focus your attention and money elsewhere.

General Maintenance

If you’re looking for a home you can just move into without having to address a lot of issues, make a point of looking for signs of poor maintenance or maintenance that was never done in the first place. Cobwebs over important areas such as the furnace, hot water heater, or air conditioning unit are generally a sign that these appliances haven’t been serviced regularly. Look at the plumbing as well, if at all possible. If you see an excessive amount of caulking or putty, you’re probably going to have to replace the pipes, and this isn’t cheap.

Go outside and check gutters and drains. If either of these are clogged with more than a week’s worth of debris, it’s likely a sign of neglect. The interior of the gutters may be damaged and have to be replaced. This may not be something that you want to do when you purchase your new home.

Doors

When most people look at a home, they look behind a door, but they don’t close it. A door that won’t close might indicate a serious structural problem. Take the time to open and close every door in the house. Some settling of a home as it ages is normal. But it’s not normal for doorframes to warp.

Flickering Lights

While you might need a home inspector to determine if the wiring is faulty, you can still make some basic observations on your own. Walk through the house and turn on every switch. If the lights flicker or you hear crackling or sparking sounds, it’s a sure sign that there might be an electrical problem. Also take a close look at the circuit box. Corrosion or an overload of wires is an indication that the system needs an overhaul.

If the agent or homeowner tells you the power is off because the house is standing vacant, insist on touring the home while the power is on. If your request is refused, you should absolutely walk away from the deal.

A Fresh Coat of Paint

Many homeowners repaint right before listing their home for sale. This could just be general maintenance and the desire to sell. However, it could also mask some serious problems. Fresh paint can cover up water spots, structural cracks, and even large holes in the drywall. If the house has been repainted but other maintenance has been neglected, you might want to ask why.

The Floor Plan

If you’re looking at older homes, beware of obvious changes in floor plan. Most older homes were not originally open concept, so if you encounter a home that has been renovated to have an open floor plan, ask to see work orders from a qualified contractor. Many times, important load-bearing walls are removed but not replaced. This leads to structural problems down the road, problems that will present a danger to you and your family and are quite expensive to fix.

The Foundation

You may not be a trained and qualified home inspector, but you can still look around for obvious problems that the owners simply didn’t tell you about. One of the most overlooked parts of the house is the foundation. Walk the entire perimeter of the home and examine the foundation in detail. Some cracking is normal, but watch for very deep or very long cracks as these could indicate a weakening foundation. Also make sure the foundation is level. A foundation that is not level is usually a sure sign of a problem that will be difficult and expensive to fix.

When you go inside, make sure you look at the basement. Search for signs that water may have leaked into the basement at some point. You don’t want to have to deal with water damage when you first move in. If there are signs of water damage and the owners claim it’s been fixed, as to see work orders to that effect. Not all owners will lie to you, but some will, so don’t take their word for it.

The Neighborhood

Before you even consider making an offer, take a tour of the neighborhood that you might be moving into. Boarded up homes and vandalized property is usually a sign of problem, as is graffiti. That ‘good deal’ might be because the neighborhood is unsafe or an attraction to criminals.

While looking around the area, take note of how many homes are for sale. If there seems to be too many homes for sale, don’t be afraid of asking neighbors why everyone is moving. You might gain some valuable information that night make you decide to walk away from that particular property, or any others in the area.

That Odd Smell

Let your nose guide you when you’re looking at a potential new home. Take a deep breath and try to identify the various scents. Try to smell beyond the baking cookies and the scent of poodle on the couch. A foul odor might mean mold, mildew, or something worse. If you smell gas, there’s probably a leak, or maybe a furnace in poor repair.

Some homeowners and agents will try to tell you that the house smells funny because it’s been uninhabited for some time. Even if it’s true that the house has been sitting vacant, that’s not the reason for the smell. If you don’t know exactly where the smell is coming from and how to fix it, walk away. Find a home that doesn’t make you gag.

Windows

It’s not enough to simply look through all the windows. Open each window each fully and close it again. Sliding windows should slide with little or no resistance. If they get stuck, you’re probably looking at a structural problem. Even if there isn’t a structural problem, windows are expensive to replace.

Where’s the Water?

While you probably can’t crawl around the house inspecting every piece of pipe, you can turn on all the facets and check the water pressure. Low pressure might indicate corroding or leaking pipes. If the water isn’t on because the house is vacant, arrange to view the home once the water has been turned on. An agent or owner who refuses to do this is definitely hiding a larger problem. There have been cases where unsuspecting homebuyers have purchased a home with no water supply at all.

Purchasing a home is one of the biggest investments you’ll ever make. You owe it to yourself to look for the red flags and evaluate potential money pits. If you haven’t seen any obvious red flags and decide that you’re interested in a particular property, hire a qualified home inspector to further examine the home. This may cost you a little money, but it will also put you in a better position for negotiating the price of the home and let you walk into your purchase with full knowledge of the problems associated with the property.