15 Red Flags to Look for When Buying a Home

Buying a house is a major decision because properties aren't liquid assets. There are a lot of transaction costs associated with the purchase and sale of real estate. And if it turns out you made a mistake, it can be expensive to rectify it -- in some cases, it can be difficult or even impossible if you can't find a buyer to take it off your hands.

You don't want to end up regretting your purchase because of a problem with the house, so consider walking away if a property you're interested in shows any of these red flags.

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There's an old saying in real estate: Location is everything. And it's undeniably true. If a property you are looking at is in a bad location, you'll likely come to regret your purchase quickly and may have a very hard time finding a buyer.

A bad location can mean lots of different things. In general, though, a terrible commute to work, a lack of amenities, or an unsafe neighborhood are all major red flags that should prompt you to walk away quickly.

After all, many things about a house can be altered -- but not its location.

ALSO READ: 5 Best Places To Buy Rental Property in 2022

If you have children, chances are the school district where your home is located will be a primary concern. But non-parents sometimes forget to research this issue, and that can be a big mistake.

The problem is properties in bad school districts can be more difficult to sell and often don't hold their value as well because people who have kids typically won't want to buy them.

You don't want to eliminate a huge pool of potential future buyers, so be sure to consider the quality of the schools when purchasing a property.

Signs of deferred maintenance can be easy to spot and could be something as simple as a cracked tile or leaky faucet. While these things are generally easy to fix, they should be considered red flags because most people try to get their property in tip-top shape before selling.

If the current owners couldn't be bothered to fix these small issues -- even when listing their home -- this should raise serious questions in your mind about what else they may have neglected that could come back to bite you.

ALSO READ: How Much Should You Budget for Home Maintenance?

Some things in a home can be very expensive to fix, such as leaky pools, damaged or old roofs, faulty wiring, or inadequate plumbing or HVAC systems.

If there are problems with a home's major components, you could face a huge repair bill shortly after purchase. Unless the price of the house reflects the fact that you'll soon incur the costs of repairs or replacements, you may want to opt for a property that doesn't need major renovations.

A door that doesn't close properly may seem like a minor inconvenience. But the reality is there's usually an underlying problem that causes this issue -- such as the foundation shifting.

Even though you can usually find a simple fix to address the problem with the door, such as shaving down some of the wood frame, the fact remains that the problem that caused the door not to close will still exist and may not be so easily corrected.

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Signs of water damage on the ceiling, floors, or walls should be a major red flag.

The last thing you want to do is buy a home that floods or has a leak, especially since finding and fixing the problem can be expensive and difficult.

Check for peeling ceiling paint, signs of patches, or other evidence water is getting in where it shouldn't be and make sure you understand exactly what caused it and how the problem was resolved before making a purchase.

ALSO READ: Will Homeowners Insurance Cover Water Damage? It's Complicated

Mold can be toxic and cause respiratory problems, and eliminating it can be expensive. You should both look and smell for evidence of mold when visiting a property. If you find the telltale signs of mold growth or smell the distinctive odor, chances are good the house isn't a purchase you want to make.

Mice and insects such as termites can do a tremendous amount of damage to a home, including eating wiring, insulation, or wood framing. Watch for droppings -- especially near walls or windows -- and knock on the walls to listen for hollow sounds that could be indicative of termites.

You should be wary if you even find signs of an old infestation. It could indicate that the home is a haven for pests that are hard to get rid of or have caused past unrepaired damages.

ALSO READ: Home Inspections for Buyers: Tips & Checklist

An unstable foundation can make a home an unsafe place to live and can be a sign of major problems that can't be easily fixed.

While some small cracks are OK, anything larger than 1/2 an inch should be a serious red flag that prompts you to either walk away from the home or at least get an inspection from a foundation expert to identify possible issues.

HOAs can sometimes be a good thing because they protect your property value. But some homeowner's associations have expensive fees or burdensome rules you'll find it difficult to follow.

Make sure you understand any limits the HOA may have in place before you commit to buying the home.

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If you plan to use the property for a specific purpose, you'll want to make sure it's zoned for it -- and that no changes are in the works.

You'll also want to consider what is permitted around the space. You probably don't want a landfill being put in next door, so learn the rules and any proposed modifications so that you aren't caught by surprise.

ALSO READ: What Is a Conditional Use Permit in Real Estate?

Property taxes are a fact of life for homeowners, and you'll be stuck paying them for as long as you own the house. Since these can sometimes cost as much as your mortgage in expensive areas of the country, you'll want to research exactly what taxes your local government assesses.

If property taxes are too high and could push you over budget, walk away from the property. Chances are good that they'll only worsen over time as frequent increases are common in many parts of the country.

It's been a seller's market for a while, and bidding wars are far too common on homes across the country.

In this competitive market, it's even more important that you research comparable values of nearby properties to make sure you're paying a fair price for your home. Otherwise, you could end up owing more than the house is worth and having difficulty getting a mortgage or selling the house.

ALSO READ: Will 2022 Be a Seller's Market?

Upgrades are usually a good thing, but only if the owner got the proper permits. Otherwise, you could be responsible for issues caused by unpermitted work that was done before your purchase. This could mean tearing out or redoing a remodeling project to bring it up to code.

You can check with your county to see if permits were pulled for any major upgrades the home has undergone. If they weren't, seriously consider walking away unless the current owner makes things right.

Finally, you'll want to make sure you won't be bothered by loud neighbors causing a disturbance as that can be an impossible problem to deal with.

It's a good idea to visit any property you're thinking about buying several times at different times of the day to see whether there are any noise issues that might affect your use of the home.

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While it's disappointing to find a home you love and have to walk away from it, you're far better off paying attention to any red flags you encounter than ending up in a home that won't work over the long term.

Remember, there's always another house out there, so if there are major issues, don't hesitate to say no to a purchase and look for something better.