On Behalf of Palacios Law Group |
You feel ready to buy your first home in New York, but you want to avoid a real estate disaster. Which red flags must you look out for to become a happy homeowner?
Forbes breaks down several warning signs that your dream home could sour into a nightmare. Learn when to turn back and look elsewhere for home sweet home.
Drastic price drop
When a property remains on the market for an extended period, owners often drop their asking price by roughly $5,000 to $10,000. When you notice a price drop ranging between $20,000 and $30,000, proceed with utmost caution. A drastic price drop does not mean that you should cross the property off your list, but you should research the reason for such a substantial price tumble.
Pending legal action
Does your dream home have pending legal action, such as lawsuits? Research the address on online court databases, or reach out to the HOA. If you uncover anything, you could use it during negotiations. Alternatively, uncovering pending or previous litigation may make you drop the property option entirely.
Ask about the deed you receive for a home you want to buy. Different deeds come with different rights for homeowners. For instance, does the deed have liens attached to it? Does the deed qualify you for title insurance?
No home inspection
You may jump at the chance to save money by buying a house without a professional home inspection, but think twice. Thorough home inspections uncover minor and major issues with the property that you may inherit if you move in. Know what awaits you and your finances regarding potential repairs and upgrades.
Cover all your bases when making an offer on a home and completing a purchase. Learning of red flags may save you a lot of frustration, time and money.