Homebuyer Beware - Red Flags That Scream "Don't Buy This House!"

Buying a home is a huge decision, and it's easy to get caught up in the excitement. But what happens when you start seeing signs that maybe, just maybe, this isn't the right house for you? I was inspired by countless "Should I buy this house?" questions on Reddit to share some crucial advice.

While having a trustworthy real estate team is essential, getting a second opinion can save you from making a costly mistake.

This blog post, based on My YouTube video, will walk you through red flags to watch out for before you sign on the dotted line.

Major Repair Red Flags- When to Run, Not Walk

Have you ever heard a deal that sounds too good to be true? It probably is. One Reddit user shared a story about a house they had an offer on. The house needed about $40,000 in work and had mold, electrical problems, and foundation issues. That amount probably wasn't enough.

The estimated repair cost was way off.

To make matters worse, it was a divorce sale, with the husband wanting to sell and the wife not on board. While they loved the house, this was a recipe for disaster. Navigating a home purchase during a divorce can be tricky, as conflicting interests can lead to delays and complications. It's essential to recognize when a deal is simply too good to be true and consider the potential downsides.

Getting Realistic Repair Quotes - Don't Guess, Get the Facts

Don't rely on guesswork when it comes to repairs. Get professional quotes, especially for mold, electrical, and plumbing issues.

Mold Remediation

Mold quotes are often preliminary and can increase once work begins. Imagine finding mold in the attic, thinking it's a minor issue. But what if it's spread into the walls? A seemingly small problem can quickly become a major expense.

Plumbing Problems

What about slow drains? They can be caused by something as simple as "flushable" wipes, which, flushable wipes are NOT flushable!

Or, they could signal a more serious issue like tree roots invading your plumbing system. A sewer scope inspection, where a camera is sent down the pipes, can help identify these bigger problems.

Seller Resistance - A Major Warning Sign

If a seller prevents you from getting contractor quotes, that's a huge red flag. It suggests they already know the problems are extensive and expensive.

If the seller is uncooperative, walking away from the deal may be the best option.

The "Perfect" House at the Top of Your Budget - Proceed with Extreme Caution

What if you find the "perfect" house, but it's at the very top of your budget? And the lender "finds a way" to make it work? Proceed with caution.

It's crucial to understand the exact monthly payments. Make sure your lender breaks down:

Principal and interest
Property taxes
Homeowner's insurance
HOA fees (if applicable)

Always get a homeowner's insurance quote yourself, instead of letting the lender handle it. It is critical you recognize that homeowner’s insurance, property taxes and HOA fees all can and will increase. If you are maxed out day one, unless you get a huge raise it will just take one homeowners or property tax increase to push you into making tough decisions.

The Property Tax Trap - New Construction and Reassessment

New construction loans often close with taxes based on land value. This means your property taxes will significantly increase after reassessment. Ask your lender how property taxes will be affected after closing so you can prepare for the increased cost.

Budgeting Realities - Can You Really Afford It?

If you can't comfortably afford the house after seeing the real numbers, don't buy it.

Consider this: one client had a $600 a month entertainment budget. They had to be honest about what they could give up.

Be honest with yourself about what you're willing to sacrifice. Strangers on a forum can't truly know your financial situation.

Debt-to-income (DTI) is only one factor. Spending habits matter too. Some people with low DTI struggle, while others with high DTI are comfortable. It depends on your personal spending.

The Lender-Realtor Relationship - Who Are They Really Working For?

A lender referred by the real estate agent primarily works for the agent. This can create a conflict of interest. They may be less likely to tell you that you can't afford the house, to avoid losing the agent's business.

Take a minute and just pause to think about it. If your agent thinks something is a good idea but you do not, who will the lender side with? They depend on that agent for business. If they disagree with that agent that could affect their income. When you pause and reflect it becomes crystal clear that you need a lender who works for you.

And YES my team and I work for you across the nation so do not hesitate to reach out.

The "Settling" Trap - Don't Buy a House You Don't Want

What if a real estate agent pressures you to buy a house you don't really want? If your agent says "If you don't buy this you will never buy a house," you should dump the agent.

While it could be the most you can afford, it's important to address needs first. It's better to wait, save money, and buy a house you'll be happy with.

Consider the challenges of a two-bedroom house for a large family. No house will be perfect, but you shouldn't settle for something you actively dislike.

More Help for Home Buyers

Buying a home is a big decision. By being aware of these red flags, you can avoid making a costly mistake. We are here to help😊 www.zerostressmortgage.com

Best,

Jen