The average U.S. home value today is about $363,000, according to Zillow. That’s a 3.3% increase from just a year ago.
When you’re looking at paying more for a home, the last thing you can afford is unwanted surprises. With that in mind, here are some key signs that the home you’re about to buy is a money pit.
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1. An Older Home Whose Systems Haven’t Been Upgraded or Replaced
Buying an older home isn’t always a poor decision. Some real estate experts will tell you that newly constructed homes aren’t being built with the same quality materials that builders used decades ago.
Where an older home becomes a problem, though, is if there’s no indication that any of its systems, from the heat to the plumbing to the roof, have been upgraded or replaced, says Elizabeth Dodson, co-founder of home management and budgeting platform HomeZada.
“If the home is 20 years old or older, and most of the major systems have not been replaced, there is a very good chance that you will spend the next five to seven years on replacement duty, based on the average life span of these items,” she says.
2. Bouncy Floors
Floors that bounce or buckle when you walk on them aren’t just a trip hazard. They could be a sign of a major issue, from water damage to a sinking foundation.
“Bouncy floors can be signs of foundation problems, which are not inexpensive, and depending on other factors, like a high water table, can be ongoing problems that you’ll continually be fixing over the years,” says Joe Muck of J Muck Realty, who’s based in Michigan.
Dodson agrees. “Buckled wood floors can be a sign of inadequate drainage that allows water to seep under the foundation instead of being drained away from the house and into the street,” she says.
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3. Many Large Trees
You’d think the presence of large trees outside a home would be a good thing. But Dodson warns that they could end up being a major headache.
“Although great for shade and adding curb appeal and beauty to your yard, big trees are typically expensive to maintain,” she says. “You’ll want to consider the cost of trimming them every 18 to 24 months which, for a typical yard, can run anywhere from $2,000 to $10,000. Also, trees that are close to the house put an additional strain on your roof and gutters.”
4. A Bare-Bones Listing
It’s a pretty common practice for real estate agents to talk up the homes they’re selling in their online listings. So if you come across a listing that seems to contain minimal information, consider it a red flag, says Majid Ghavami, real estate agent/team lead at ReeceNichols Real Estate in Kansas City, Missouri.
“If there are never any interior photos of the house when they post online, that’s a sign. It could mean they’re trying to hide it,” he says.
Ghavami also cautions that if a listing says a home is being sold as-is, you may want to run the other way. This also holds true if you’re presented with a real estate contract that has a present condition addendum. According to Ghavami, that’s basically a seller’s way of saying “We know the house has issues, and this will be a lot of work.”
Also look at the listing history. Is the home on its third owner in seven years? That should tell you something.
5. Bad Smells
A home that hasn’t been well-cleaned might smell funny. And in some cases, that’s something you can address by, well, giving it a thorough cleaning.
But Yaeir Moinzadeh, owner of Blue RiseRoofing in Baltimore, warns that certain smells could be an indication of a lurking problem. He especially says to be on the lookout for mustiness or a rotten-egg or fishy smell.
“These could be an indication of serious issues like mold, gas leaks or electrical problems,” says Moinzadeh. “These issues are not only expensive to fix, but also can be hazardous to your health.”
6. A Damaged Roof
Roofing systems don’t last forever. But you probably don’t want to buy a home only to have to put on a new roof three months later. So Moinzadeh says to pay close attention to the state of a given home’s roof.
“Always look for missing shingles, sagging or signs of water damage inside the house. It is critical to check for these signs as replacing a roof can cost thousands of dollars,” he says.
7. A Seller Who Is Really Eager to Sell
You may come across a home that appears to be in top condition. But just because you don’t see any obvious issues doesn’t mean they aren’t lurking.
“There are certainly physical clues you can look for, but don’t forget the psychological,” says Howard Dvorkin, CPA and chairman of Debt.com. “Don’t just study the building. Study the seller’s face. Are they pressuring you for a quick sale? Dismissing your concerns as normal wear and tear? Sometimes a gut feeling goes a long way.”
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8. A Condo That Looks Great on the Inside — but the Outside Is a Mess
Even when you’re buying a condo where you’re not solely responsible for exterior maintenance, there’s always the chance that you’re getting in over your head. That’s why Dvorkin advises to pay attention to a condo’s exterior as much as the interior. And don’t just look at the roof of the building — inspect the grounds in their entirety.
Dvorkin likes to remind condo buyers that homeowners’ associations can impose special assessments for nonrecurring but necessary costs, like repaving a street or repairing on-site facilities like pools and tennis courts. Those could bust your budget the same way an unexpected house repair could.
“You could be hit with a five-figure charge for street regrading or landscape replacement,” he says. “It can still be a money pit even if the home is sound but the HOA is not.”
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8 Signs of a Money Pit House originally appeared on usnews.com
