Beware of These 5 Home Inspection Red Flags

Don't buy a money pit.

Anyone who tells you that buying and owning a home is less costly than renting one is not seeing the whole picture. Even if a mortgage payment on a property comparable to the home you rent is less expensive per month than your rent payment, you're not seeing all the costs of homeownership. These include ongoing maintenance and repairs. And if you own the house, it'll be on you to pay for and arrange the work (or perform it yourself, if you are qualified to do so).

This is why it's a good idea to approach the buying process with eyes wide open and not to waive your inspection contingency. The inspection contingency in your purchase offer states that you are allowed to have the house inspected, and should that inspection turn up some less than optimal news about the home's structure and features, you can renegotiate the price or ask the seller to pay for repairs. Here are five bad signs to watch out for -- getting a mortgage on a home with these issues can end up costing you a lot.

1. Roof issues

The roof is an extremely important part of a home, as it's literally your shelter from the weather. And it's also expensive to replace a roof. Realtor.com notes that a standard home inspector may not dig too deep when it comes to checking out the roof of a home. But if they (or you) notice visible clues, like curling or missing shingles, it might be worth it to call in a specialist (i.e., a roof inspector).

2. Window problems

If a home inspector spots problems with a home's windows, it could be an indication of larger issues with the house. Possible window red flags include feeling a draft, seeing condensation on the glass, and difficulty opening and closing. If it's an older home with wood-framed windows, the frames could even be rotting. Window replacement is not cheap (Bob Vila notes an average cost of $564 per window), and having bad windows can result in higher energy bills (as my dad used to tell me, you don't want to be paying to cool or heat the outdoors).

3. Older home systems

Ideally, your home inspector will take special care to check out the home's vital systems, including heating and cooling, plumbing, and electrical. The technology, safety standards, and materials used for all these parts of a house have evolved and changed over time, so if you're buying an older home, it's vital to ensure these are in good condition and have been cared for or recently replaced.

4. Water damage

Water damage in a home can be easy for an unscrupulous home seller to mask. Beware of hastily painted over water stains on ceilings, odd smells, or warped walls and floors. And remember that water leaks can also lead to mold growth -- which is both gross and not good for your health.

5. Foundation damage

A home's foundation is like its skeleton, so you want to make sure you're not buying a house with foundation problems. Ideally, a home inspector (and you) should look for danger signs like uneven floors, cracks in walls and ceilings, and moisture in the crawl space (depending on what type of foundation the house has).

What happens now?

If your home inspection turns up these or other potentially costly issues, you have a few options. You can see if the seller will either renegotiate the price, or pay to have the problems fixed. Or you can walk away from the deal (it bears repeating, don't waive the inspection contingency when you make an offer). You're likely buying a home to live in for at least a few years, so do yourself a favor and avoid buying a money pit that will drain your bank account.