Homeowners can sometimes overlook things in the excitement to buy a property. When purchasing a property, there are a few red flags that you should be aware of:
1. Fresh paint on some walls
Some homeowners sometimes use a fresh paint job to hide problems with the house. If you find out some walls are freshly painted while others are not, ask the homeowner or the real estate agent some questions. Compare the answers of the seller with the agent to see if they match. Then compare the information with the seller's disclosure beforehand about any issues or past repairs with the property. If you suspect that the home contains some home renovations that you are not aware of underneath the fresh paint, then you should call an experienced general contractor to help you take a look.
2. Title issues
A home buyer or lender will carry out a title search while the home is in escrow. You should pay attention to the preliminary title report and check if there are liens, restrictions, encumbrances and anything else that could restrict how you can use the property. When doing due diligence during the escrow period, make sure you understand your rights as a buyer on the property and any third parties included in the title. As a rule of thumb, the longer a title report is, the more likely there's something there that you should know. A preliminary title report is an important document that you should go through. If you do not understand the terms on the title document, ask for help from your real estate agent or a lawyer.
3. Cheap flips
Today's real estate market is filled with people who are looking to make money from flipping homes cheaply. Be wary to avoid becoming a victim of a quick flip. Many houses are products of extensive renovations. Sometimes the contractors use substandard building materials that may have problems despite their shiny looks. As a buyer, you should check the kind of materials used in the home you want to buy. If you don’t know much about construction, hire a general contractor to help you inspect the home extensively.
Pay attention to the seller’s disclosures to identify any red flags that may be there and if they will cause you problems in the future. Consult with a real estate agent or lawyer to help you avoid issues with your home purchase.
