The home buying process is evolving. If you find a home that seems to tick all your boxes and even comes with an affordable price tag, it’s only natural you’ll want to take the opportunity. However, you need to be mindful and look out for signs a real estate deal is too good to be true. That way, you’ll protect yourself from potentially making a huge mistake. If you are not sure what the warning signs you should pay attention to are, continue reading this article.
What are the signs a real estate deal is too good to be true?
Whether you’re buying a vacation home or a family place, you have to be careful. You need to thoroughly check every aspect of the property to ensure you’re making a good investment. Here are seven signs to look for when buying a home that will help you avoid making a big mistake.
#1 Your real estate agent or seller are being sketchy
Any off-putting behavior from either the seller or real estate agent could be a potential red flag. For instance, if the seller offers you financial incentives to skip a home inspection take it as a warning sign. They could be trying to hide severe and expensive issues. Also, don’t forget to check for permits and title insurance.
On the other hand, if your agent is being vague with answers and acting shady, make sure to double-check everything. You don’t want to risk investing in a property with a significant flaw.
#2 The asking price is either too high or too low
If a property seems too good to be true, it probably is, and for a good reason. Prices reflect value, so if a property is cheaper than other comparable homes in the area, it could mean that there are major issues. Or, the seller could have a lot of overdue property tax and association dues that they want you to take on.
#3 The neighborhood seems shady
Finding the perfect neighborhood is as important as finding the perfect property. However, this is not easy, especially if you are buying a home in a different city.
The experts from Simplify Valet Storage & Moving suggest asking local movers or couriers about neighborhood information. As they’re constantly in the area, they will have valuable insight to share. Additionally, make sure to take a walk around the neighborhood you’re interested in. You’ll experience the neighborhood vibe and determine if it’s a fit for you.
#4 Not enough photos
If a listing doesn’t have more than one or two photos, it doesn’t necessarily mean that there is something wrong with the property. Check the date – if the ad is new, it might mean that the photographs are still not ready.
On the other hand, it could also mean that the seller is trying to hide something. For instance, if you see pictures of every room besides one, there could be problems the seller is trying to hide.
#5 The property has an unclear history
Most real estate agents can research the property you like. They can find out about the repairs or any major damage that might have occurred. If you feel that the seller is not proving all information in their disclosure form, make sure to ask your real estate agent for more details.
Also, if you see that the property has been on the market for too long or has had several accepted offers that have fallen through, take it as a huge warning sign. It could be that there’s something seriously wrong with the property.
#6 Home is staged too perfectly
Sure, it’s nice to come to an open house where rooms look like a page from your favorite interior design magazine. If a home is staged well, it’s easier for you to see its full potential as well as to start imagining your life there. You’ll start thinking about how you’re going to adjust it to your liking and make it feel like home after moving in.
But don’t get carried away and rush into making a decision before doing thorough checks. If a property is staged to perfection, it could signify that the seller is trying to hide something and using great staging methods to draw your attention away from it. Here’s what to pay attention to:
- Freshly painted walls could mean that the seller is trying to hide water damage.
- If a piece of furniture is placed in an odd place, it might be hiding something.
- Background music could mean the seller is trying to distract you from other sounds such as construction or traffic noise.
- If you notice a carpet in only one room or in a place where it simply doesn’t belong, check for damage on the floor.
#7 You have a strong gut feeling
Lastly, if your gut is telling you that something is off with the offer, you should probably listen to it. Of course, you don’t have to instantly back out from the sale. It simply means you shouldn’t rush your decision before ensuring that the property is worth investing your money in.
Look out for signs a real estate deal is too good to be true
We hope our list of warning signs a real estate deal is too good to be true has helped you decide if you should invest or not. The most important thing to do, especially if you are a first-time homebuyer, is to take things slowly by thoroughly checking all the aspects.