Safeload Coverage
By: Mackenzie Scibetta, Zoocasa contributor
For most homebuyers, closing day is one of the most satisfying and relieving moments of the entire homebuying journey. It’s the day they receive their keys and can officially move into their new home. It also marks the end of the stress of searching for properties, signing legal documents, competing in bidding wars, and navigating mortgage options.
For some buyers who aren’t careful, however, this milestone could lead to owning a home that brings more problems than joy. From hidden structural issues to financial scams, you need to watch for several red flags during the homebuying journey. Here are the top warning signs to be aware of when searching for a home to purchase:
Foundational and Structural Problems
Foundational and structural issues are some of the most critical concerns when buying a home, as they can lead to extremely costly repairs and compromise the safety and stability of the property. Key areas to examine include cracks in walls or foundations and potential roof problems.
Cracks in the Foundation, Walls, or Ceilings
While seeing cracks in the wall or foundation may seem like an obvious red flag, not all cracks are created equal. Some may be minor and purely cosmetic, while others can signal serious structural problems. It’s vital to assess the size, location, and direction of the cracks.
For example, small vertical cracks might indicate normal settling, whereas horizontal or stair-step cracks could suggest significant foundational issues. Horizontal cracks also could indicate ceiling or roof issues, which would result in expensive repairs down the line.
Similarly, some hairline cracks in the walls or ceilings may be a sign of normal aging, while larger cracks could indicate a more serious problem. As a rule, cracks that are wider than 1/4 inch, or approximately 6 mm, are likely to be structural foundation cracks. If found near a door frame or windows, these can be especially concerning.
Costly Roof Problems
Roofs are one of the most expensive home repairs, making them a crucial consideration when buying a home. A problem with your roof could cost you tens of thousands of dollars to fix, so you’ll want to have it properly inspected before buying a home.
One easy red flag to spot on a roof are missing or damaged shingles. High winds, sun exposure, or heavy rain can cause damage to a roof, resulting in missing shingles.
This can lead to water damage and leaks if not properly fixed. It also can result in larger structural damage or even a roof collapse.
Another serious red flag to spot on a roof is sagging or visible deterioration. This may indicate structural issues, such as weakened roof supports, rotting wood, or water damage. Left unaddressed, these problems can lead to costly repairs and compromise the home’s overall safety.
Here’s some more red flags to look for on a roof:
- Water Stains in the Attic: Water stains, mold, or damp spots on the underside of the roof decking could indicate leaks or inadequate ventilation.
- Significant Debris in the Gutters: Gutters with a significant number of granules or debris from shingles can be a sign that the roof is aging or deteriorating. This could mean the roof is near its lifespan and may need replacement soon.
- Dark Spots or Streaks: Dark spots may point to algae, mold, or water damage. These issues can shorten the roof’s life and may indicate trapped moisture or poor drainage, which could eventually affect the roof’s structural integrity.
Financial Scams
Structural and foundational issues are not the only red flags you should watch out for when buying a home. You’ll also need to be particularly careful about who you work with and where you send your money.
Beware of Wire Transfers and Real Estate Scammers
According to a 2023 report from the FBI’s Internet Crime Complaint Center (IC3), the FBI received 9,521 real estate complaints in 2023, with crimes amounting to $145,243,348. In one concerning example, a homeowner was instructed by their attorney via email to wire $426,000 to a financial institution, only later to learn the email was a spoof.
Similarly, in Ontario, one family was tricked out of giving away a $38,000 deposit to a man claiming to help them buy their dream home. It turned out the man was not a real estate agent, and the family had lost their down payment money.
Real estate scammers often try to pose as real estate agents and may even use fake documents to legitimize themselves. They’ll also often use pressure tactics to get you to make hasty decisions. Lastly, and most commonly, scammers will usually request for payments via wire transfer.
While stories like these may sound scary, working with reputable real estate agents is one easy way to avoid these types of financial scams. Additionally, you should verify the brokerage or real estate agent you’re working with is legit by checking their licensing.
Below are some websites where real estate licensing can be verified for states and provinces:
- Ontario: Real Estate Council of Ontario
- British Columbia: BC Financial Services Authority
- Alberta: Real Estate Council Alberta
You also can protect yourself from financial scams by remembering that legitimate transactions take time. Be cautious of any real estate agent pressuring you to make an immediate payment.
Additionally, carefully review all documentation, including contracts, titles, and financial statements, and watch for inconsistencies. Don’t hesitate to question anything that seems suspicious. A professional real estate agent is there to guide you through the home buying process and will not mind answering your questions or addressing your concerns.
A Suspiciously Low Asking Price
There’s a reason to be skeptical about a home with an asking price that is too low, especially if at first glance the home looks well-maintained and move-in ready.
Why a Low Price Might Be a Red Flag
For one, the sellers could be trying to hide or downplay harder-to-see issues like foundational damage, plumbing, or electrical issues. Although legally they’re required to disclose known issues in many jurisdictions, some sellers may omit or minimize them, leaving buyers to uncover the costly repairs later.
A lower-than-expected asking price also could be a sign the area is not ideal. For instance, if the neighborhood has high crime rates or poor schools, this would decrease property values.
Another possibility is the area is susceptible to environmental risks like flooding or hurricanes, which also could reduce the resale value.
Lastly, an unrealistically low price might indicate the sellers want to spark a bidding war which would ultimately drive the final sale price well beyond the initial asking price. While this would mean nothing is wrong with the home, many buyers wouldn’t want to get involved in an extremely competitive bidding process.
How to Protect Yourself
So, what can you do to ensure that a low asking price isn’t hiding a red flag? Scheduling a professional home inspection is one of the best ways to uncover any hidden issues.
A qualified home inspector will thoroughly evaluate the property, including its foundation, roof, plumbing, electrical systems, and overall structural integrity. This detailed assessment can reveal problems that aren’t immediately visible, such as water damage, faulty wiring, or deteriorating materials.
In addition to a home inspection, consider:
- Researching the Neighborhood: Check property values and recent sales in the area to see if the low price aligns with market trends or stands out as unusually low.
- Requesting Seller Disclosures: Ask for a complete list of any known issues with the home to verify the seller is being transparent.
- Consulting a Real Estate Agent: Work with an experienced agent who can help you understand why the price might be low and whether it’s a cause for concern.
- Asking Questions: Don’t hesitate to inquire about the home’s history, including past repairs, renovations, or unresolved issues.
By taking precautions like hiring a professional home inspector, researching the neighborhood, and working with a trusted real estate agent, you can confidently navigate any concerns around pricing and avoid potential pitfalls. Remember, a good deal should feel secure — not suspicious.
If you have questions about red flags or need expert advice on your homebuying journey, reach out to Zoocasa today. Our team is here to guide you every step of the way, ensuring a smooth and successful experience.
Contributor’s Bio: Mackenzie is the Senior Specialist of Public Relations and Content Marketing at Zoocasa, an award-winning prop-tech company that uses technology to provide an intelligent, end-to-end real estate experience. As a dedicated real estate writer, Mackenzie is known for her comprehensive and data-driven reports, which track and analyze trends in local markets across North America.
