We’ve all heard the old adage, “when it seems too good to be true, it probably isn’t.” But sometimes, it can be difficult to distinguish a truly good deal from a bad deal disguised as a good one. This is especially true when it comes to buying a house. How do you know if the real estate agent is telling the truth? How can you tell if a house should be really priced that low?
Here are the tell-tale signs that a real estate deal is too good to be true and you should probably avoid it:
Seemingly small issues that can lead to bigger problems
You find a beautiful home with a good price on it. You tour the house with high hopes and, much to your dismay, start noticing cosmetic issues. Do you ignore these issues because it’s such a good deal or should you dig deeper? If you want to avoid a massive headache later on, we suggest you go with the latter.
Small problems around the house can mean that there are bigger ones coming your way. For example, if the wooden fence around the property is freshly painted but looks old, the paint may have been used to cover rot. If you decide to buy the house and find out that the fence is already rotten behind the paint, you would have to call a vinyl fence contractor for a complete replacement (to a fence that doesn’t rot).
The seller or real estate agent is being sketchy
When you feel something off about the seller or real estate agent, it’s usually best if you trust your gut. Pressuring you to make a decision, inconsistencies in statements and paperwork, and offering incentives to skip inspection are signs that you’re walking into a trap. Don’t be rushed into making a decision when you are not ready. And if you feel that the seller and real estate agent are not being completely honest, move on to the next option.
The house is too cheap
Most homebuyers, especially first-timers, walk right into this trap and end up regretting their decision later on. A house that is listed too cheap will likely have major problems that require significant costs. Or perhaps there are going to be changes in the community that can affect your qualify of life if you move there. The house could also have a bad history, such as a crime happening in the home or something just as traumatic, which can affect its resale value when you decide to sell it later on.
If the house is priced way below market value, it’s time to start asking questions. Better yet, consider other options with more logical prices. Do not be steered by the low price; you may end up spending more on repairs than if you’d bought a house with a bigger price tag.
The location is not that great
It may not be the house that’s the problem; it could be the area surrounding it. The location may be prone to floods, the city may have a high crime rate, or the school district may be underperforming. Whatever the case may be, a seemingly good deal may be because the house is in a not-so-great neighborhood.
Don’t take on a significant financial responsibility when you feel in your gut that it’s not the right house for you. Before you decide, make sure that the house you’re buying is not too good to be true.