Red flags to look for when buying a property

BiggerPockets’ James Dainard (Heaton Dainard Real Estate) shares the most common red flags that could cost you tens of thousands of dollars when buying a house. Walk slow, bring your camera and start taking notes when you check for the following items

The visible parts

desperate evicted male entrepreneur standing near window
  1. Sloped floor (one corner or on both) – may be leveled with sub-floors if the house settled, unless it is caused by a massive foundation problem (very expensive).
  2. Signs of asbestos (HVAC wrapped with tape, popcorn ceiling, type of siding). You can also check the asbestos survey.
  3. Water intrusion (walls, basement, gutters). Check for signs of moisture in the basement, leaking on the window edges, mold or leaking in the attic.
  4. Square footage not matching the tax records (house looking bigger and/or have extra rooms or an atrium) can mean non-permitted work and the property potentially not to code.
  5. Broken concrete or stress cracks in numerous spots can be a sign of a problem with the soil or the house not being framed properly and therefore not structurally sound. Walk all the concrete services and inspect all retaining walls. Check for leaning retaining walls or sunken sidewalk.

The hidden costs of “weekend warrior houses”

friends having barbeque party
  1. “Weekend warrior” refers to owners and their friends doing most of the work themselves not using qualified tradesmen without permits.
  2. To distinguish pro versus amateur remodel, check for the flow of the house such as the location of the rooms, outlets or the mechanical, unequal heights (floors and ceilings), plumbing and electrical
  3. Framing issues such as bedroom walls that do not line up
  4. Decks that lacks an actual footing (not lag bolted to the house structure) and built without pressure treated lumber. Check for moving parts.
  5. Pools – make sure they are not leaking and that they are serviced well (boiler, tiles, surroundings…)
  6. When you notice such red flags, use a home inspector and a license and permit bond professional. Even a contractor can tell what is wrong with the house.
  7. You can also visit the local administration to pull the permits associated with the property
  8. Have a seller’s disclosure statement stating that some of the works were performed personally and without a permit

Leave a Reply

Your email address will not be published. Required fields are marked *