Red flags no one tells you about but will cost you thousands to fix
Home hunting is a tedious process.
Especially, if you are a 24-year-old female, browsing listings and doing viewings on your own, for the first time, across three cities in two different countries.
Okay, okay. That might just be me. But still — the process is hard, emotionally (and sometimes physically) draining, and requires your complete vigilance throughout. As much as you want a home, the seller wants to get rid of theirs — and you should always ask exactly why that is.
Almost a year at my new flat, and with a partner by my side, I am starting the home hunting process all over again; this time searching for a house.
I wanted to be prepared for all the things that I either overlooked or did not look into enough before purchasing my first home, which ended up costing me. Big time.
So, I compiled a list of everything I did not pay enough attention to the first time around.
This list includes everything that could end up making your house a home, if right, or could make you want to move out ASAP if overlooked.
Or, in my case – cost a few extra thousands to fix.
1. The neighborhood is dodgy.
The neighborhood can play a significant role in your life. It can make or break your future home, so you should totally take it seriously.
In Glasgow, I lived in a rented flat by myself for a few years in a highly unsafe neighborhood, where crime occurred on a daily basis. It was not great for my mental health in the slightest.
How much can it cost you?
Empirical research of crime and property value demonstrates that change in nearby crime is largely and statistically significantly associated with property values. The elasticities of price range between 15–35%, based on the scholars’ estimations.
While this may appear appealing in the short-term, when thinking about the resale opportunity, buying the ‘best house in a bad neighborhood’ might not work for long-term value generation.
How will you know?
Purchasing a home is a big commitment, so ensure you visit during different times of the day, remaining vigilant for anything suspicious around. After all, the issues in the area might also be the reason the previous owners have fled.
2. The neighbors are problematic.
So, unless you want your life to become an episode from something straight out of TLC, definitely take this one seriously. An ongoing feud about something that happened years ago with the previous owners can easily be continued with you. You don’t want to get into anything of the sort.
Neighbors that play loud music during the day or party hard at night, if you are just trying to raise a family and settle down can destroy your nerves and well-being.
From my experience, there is only so much that institutions can do. The process of evicting tenants due to antisocial behavior or persuading an owner of the same can be exhausting; often ending up unfruitful.
How much can it cost you?
According to a report published by the Ministry of Justice in 2015 disagreements over boundaries typically cost litigants between £10,000 and £50,000 ($13,211 — $66,056). The potential cost can rise far higher in the most bitterly contested cases.
Not only that but falling out with a neighbor can devalue a property, making it harder to sell unless the owner is willing to take a financial hit.
How will you know?
A useful tip is to browse through public record court information to check if there is anything concerning your address — be it from the civil court or the crime registry.
On those neighborhood visits, I mentioned above, also make sure to check things like loud music in your building or antisocial behavior from any neighbors. Ask around and try to strike a conversation with the people, who you soon might live close to.
3. The property’s history is poor.
According to The Balance,
A death in the house is a deal-breaker for some prospective buyers.
Research shows that most people would ultimately decide based on how the death occurred as opposed to if it happened. I am going to be honest with you: It is very unlikely (especially if you are buying a property older than 20–30 years) that nobody died there. And the truth of the matter is — you might have no way of finding out.
How much can it cost you?
According to diedinhouse.com (a website, which aims to gain transparency regarding a property’s history),
It’s estimated that a non-natural death can drop a home’s market value by as much as 25%.
That is a pretty significant number, so whether the flat’s history will repel you or not, it is always good to be informed to improve your negotiation tactic and avoid overpaying. Also, even if you are unbothered, the next buyer might not be, should you wish to re-sale.
How will you know?
Most properties have a seller disclosure form, which can be used to check for anything out of the ordinary; however, from personal experience — this is really far from useful in getting answers to your questions.
Contacting the seller directly and asking them is another option, but remember they are under no legal obligation to disclose any deaths at the property. Your best bet might be to talk to your real estate agent about the home’s history.
4. Finding a Parking Spot is Impossible.
Yeah, so you know that amazing flat you liked, the one within walking distance to the city center, is on the cheaper side and still within a nicely integrated neighborhood? Good luck with trying to find a parking spot there after 5 PM.
Have to move furniture, but you parked 3 blocks away? Bad luck.
How about your disabled grandma visiting? She doesn’t even stand a chance.
Bonus points if it is near an event venue, so you can completely forget about moving your car and hoping to park within a few blocks when a game or show is on.
Sadly, I speak from experience.
How much can it cost you?
Having even a single parking space to your home could see the property’s value soar by 5%, according to property experts. If you ever want to sell the property in the future, the attractiveness of off-street parking will make your property easier to sell when it goes on the market.
If the property has a garage, it can be used as a conversion and be placed on the rental market, generating passive income. This means that not having a parking space or garage could be stripping you off from potentially thousands in profit.
How will you know?
Well… I guess you will just know.
5. The building is a literal hazard.
We all love a good bargain, I am sure. But a tree growing from the building itself is just not a good sign, sorry to break it to you.
How much can it cost you?
Some things you should definitely look into are:
- The stability of the building
Foundation issues can lead to destruction in an event of an earthquake or a big storm.
Foundation issues can cost you your entire home if it is not insured.
- Mold and big cracks in the walls
While these can be tackled if small at scale, huge cracks in the walls can become home to toxic mold, which can remain hidden from the owners, thus living alongside you and any other residents of the house as a hidden guest, causing health risks and complications to those, who suffer from respiratory issues.
On average, professional mold remediation costs $500 — $6,000 with most homeowners spending between $1,500–$3,150 or $15 — -$30 per square foot.
Plastering, on the other hand, costs from $20 to $70 per square meter for drywall, while wet plaster rates to be range from $45 to $90 per square meter.
- Outdated piping
This in itself is not something to discard for. However, you should be aware of the issues before purchasing as it can cost a lot to be revamped.
Piping is generally quite expensive. On average, the rate for small sections is $1,078.
- Electricity and wiring
Unless you are planning to make a full renovation, this alone should be able to put you off from an otherwise good property; wiring issues are costly to fix and can sometimes require a complete renovation to bring back to safety.
According to homeguide.com, the installation of electrical wiring costs $2 — $4 per square foot on average. The wiring alone costs $6 — $8 per linear foot, while structured wiring and heavy-duty data cables — which handles communication and entertainment devices — add $2 per foot.
- Fire safety
Making sure that all fire safety systems are in order, and all work on the property has been done according to regulations can save you a lot of legal hassle down the line.
Installing a fire safety system costs $510, on average.
As you can imagine, these can quickly tally up and most of them remain hidden until you move in or start renovating the property.
How will you know?
In order to detect these hidden issues, you must put your investigator hat on and be very adamant about getting answers when you survey your agent or the previous owner.
Ask how old the building is, and how long ago have the piping and wiring been done, aks even if the fire alarm is working. Some things will inevitably come up, but you should be aware of and consider all information you gather when tallying up the property’s cost.
In some countries, you might be able to benefit from a buyer’s report, done by an independent assessor, published by the selling agency. However, these do not always include an assessment of the building’ss stability, foundational issues, etc., for which I was told an engineer’s report is needed.
6. It feels… crowded, even when there is no one around.
Do you get the sense of never being alone when viewing the property, even when you are? Some unfamiliar sounds in the walls, or an unease feeling?
Well… you might be correct. Pests and rodents are unfortunately wildly common.
Infestations are far from cute. Cockroach infestations can trigger asthma attacks and can cost a fortune to get a handle on. So, it’s best to learn how to identify the issues before you buy.
How much can it cost you?
The costs for rodent removal typically range between $169–500. Mice and rat removal runs anywhere from $200 to $1,200. Raccoon removal usually costs $350 to $500, not including repairs, which can add up to $2,500 or more.
Insects are a pain and quite costly to get rid of. Two treatments can effectively remove cockroaches for a price of $300 on average but if your home needs pest control treatments throughout the year, you could pay upwards of $600.
How will you know?
According to Realtor.com, rodents can be spotted by hearing scratching under the floor or behind the walls and by nests in cabinets, pantries, or storage rooms. Insects can also come into the property by holes, cracks, and openings, hence why the previous pointer about cracks in the walls is important.
7. The area has no prospects.
It’s important to know the future of the area in order to determine whether it aligns with your future. Developments of student residences nearby will probably be good news if you are buying as an investor but could break the deal if you are buying to move in with a newborn.
How much can it cost you?
One analysis from the National Bureau of Economic Research found that overall, every $1 spent on school funding increases property values by about $20. However, it’s important to note that different local developments can play a different role when it comes to value.
How will you know?
Some good indicators are the presence of police stations, ocal authorities, schools, kindergartens, as well as local amenities, such as grocers, local shops, and supermarkets. This means the city’s council and businesses are finding the area good enough to invest in.
Check the city planning public documents. This is quite important from a value standpoint, as something as a subway station nearby can drastically bump the value of a central property. Plans of building a school or a small local residential area can do quite the same for a larger, out of town property.
8. The previous owners were a mess.
If you have a chance to meet the owners — ask them about how long they have lived in the flat, why are they leaving it, what did they most like about it. These are the type of questions that will help you grasp their attitude towards the property — attentive and loving or reckless and distant.
If the property has changed hands often — this is obviously a bad sign.
How much can it cost you?
This one is hard to estimate, however, think about the price of an average refurbishment, depending on the severeness of the property’s condition.
How will you know?
Think about when was the last time the flat re-sold, for how much and why. This is very important information as this alone can help you identify if there is a common pattern of the flat changing hands, indicating a bigger, hidden issue with it.
Finally…
Hopefully, I have not completely put you off from buying a home. I am determined to stay informed and strike a better deal the second time around, and hopefully, now you can, too, without having to pay a hefty price.
No home is perfect and you are bound to have a few financial roadblocks along the way, but overlooking all of these problems together can end up costing you your good deal, and more.