Whether you are new to buying a home, or an experienced real estate investor, being careful and knowing what to look out for can help make sure the property you buy is as good an investment as it looks.
Here are three “red flags” to look out for during any real estate transaction in New York:
1. TITLE CONCERNS
With your real estate attorney, you will go over the title report carefully looking out for any information that could signify issues with the property’s title. Easements, judgments, liens, and other exceptions could restrict the way you use and enjoy the property or could equal to additional funds you will need to pay in the future. Any issues in the property’s title could be red flags that you want to fully review and understand.
2. RECENT REPAIRS
Many property owners will make repairs and cosmetic upgrades prior to putting a home on the market so that they can increase the asking price.
If a house needs repair, it’s not only harder to sell but it gives you, the buyer, a possibility to reduce the asking price or lower the selling price after your initial property inspection.
On the other hand, upgrades, enhancements, and modernizations to a property make it easier to sell.
Unfortunately in a crunch for profit, sellers don’t always fully repair the issue and often do a “quick fix” to cover up a bigger problem. Upgrades can also often be made of poor quality materials and craftsmanship.
A flipped house may look amazing, but keep in mind that the less the seller spent on flipping the house the more he will make from the sale.
Prior to making an offer, or during the inspection process, fully review all repairs closely and get information about what the issue was, and if it is now fully fixed. Also, look at upgrades and look for signs of poor quality work.
Note that many homeowners genuinely repair issues so that they can more easily sell their property. Not all repairs and upgrades are a red flag, but be sure to look at them carefully when they