Investing in a home is a significant decision, and being aware of potential red flags during the home buying process can help you make a more informed choice. While a fresh coat of paint, attractive staging, and modern updates can enhance the appeal of a property and make it seem ready to move in, they could also be masking underlying issues that may be costly to address.
In this guide by Redfin, we will discuss the common warning signs to watch out for when touring a home and provide expert insights on what these signs could indicate for your purchase. Whether you are searching for a house in Denver, CO or considering buying a home in Tampa, FL, these tips will help you see beyond the surface and approach your home buying journey with confidence.
In this article:
1. Cracks in the foundation or signs of movement
2. Signs of water damage or poor drainage
3. A roof or major home system nearing the end of its life
4. Fresh paint or patchwork in suspicious places
5. Strong fragrances or too many air fresheners
6. The home was previously under contract and returned to the market
7. Renovations that may not have been permitted
8. A home that looks like a rushed flip
Home buying red flags to keep in mind before you buy
1. Cracks in the foundation or signs of movement
Issues with the foundation can be costly to fix, so it’s important for buyers to pay attention to cracks and indications of movement while touring a potential home. Although some cracks may not be a concern, issues like doors that stick, uneven floors, or gaps around structures should prompt further investigation by a professional inspector.
“One major red flag to watch out for is signs of deferred maintenance, such as cracked foundations or neglected roofs, which could point to underlying costly problems,” advises Liz Rossof at Denver Nook. “Make sure you work with a real estate agent who takes these factors into account when negotiating the purchase price and securing repairs before closing. If you are unable to identify these issues yourself, your inspector will be able to identify and report on them.”
When inspecting a home, watch for:
- Cracks that are widening, horizontal, diagonal, or in a stair-step pattern.
- Doors or windows that are difficult to open or close.
- Uneven, sloping, or sinking floors.
- Gaps between walls, ceilings, floors, or door frames.
- Signs of water seepage near foundation cracks.
2. Signs of water damage or poor drainage
Water damage can be easily overlooked during a home tour, especially when the property looks well-maintained and move-in ready. If you observe signs of water infiltration, inquire about how and when the issue was addressed, and have your home inspector investigate further before proceeding with the purchase.
“When looking at houses, go beyond the surface appeal of fresh paint and staging and pay attention to signs of water penetration, foundation shifts, inadequate drainage, or overlooked issues with the roof, HVAC system, plumbing, and electrical systems,” recommends Frank Albert. “A seller’s reluctance to share an inspection report they have received can be a red flag, but buyers do not always disclose their reports to the seller, so the absence of one alone may not be cause for concern.”
Look for:
- Water stains or discoloration on ceilings, walls, or baseboards.
- Musty or damp smells, particularly in basements, closets, or crawl spaces.
- Bubbling, peeling, or recently painted areas that may hide previous damage.
- Warped, buckled, or uneven flooring.
- Standing water or improper grading around the home’s foundation.
- Gutters or downspouts that do not effectively divert water away from the home.
3. A roof or major home system nearing the end of its life
Even if a home’s roof, heating and cooling system, plumbing, and electrical systems are still functioning, they may be close to the end of their lifespan. Prior to purchasing, inquire about the age, maintenance record, and condition of these critical systems so you can plan for potential repairs or replacements and avoid unexpected expenses.
Keep an eye out for:
- An older roof with missing, curling, or damaged shingles.
- Aging HVAC equipment, poor maintenance, or difficulty maintaining consistent indoor temperatures.
- Outdated electrical panels, wiring, or other electrical components.
- Older plumbing or signs of leaks and corrosion.
- Incomplete maintenance records or limited documentation of past repairs.
4. Fresh paint or patchwork in suspicious places
While cosmetic enhancements can give a home a modern feel and make it seem move-in ready, buyers should not overlook the overall condition of the property. During a showing, take note of the finishes in each room and identify any areas that appear recently repaired or inconsistent with the rest of the space.
“Buyers should pay attention to a single wall with fresh paint or noticeable patchwork that looks newer than the surrounding areas,” advises Derek Earley at Staging OC. “These could be attempts to conceal damage or unpleasant odors.”
Look out for:
- Paint colors or textures that do not match.
- Uneven surfaces or visible patches.
- Peeling, bubbling, or warped areas.
- Repairs focused around windows, ceilings, or exterior walls.
If you notice an area that seems out of place, inquire about the repair and have your inspector investigate it during the inspection.
5. Strong fragrances or too many air fresheners
A home with overpowering scents warrants a closer look. While fragrances may simply be part of the seller’s cleaning routine, an excessive use of air fresheners throughout the property could be an attempt to mask underlying odors or issues.
“When house hunting, I always advise my clients to be wary of certain red flags. A home with an overpowering scent or an abundance of air fresheners is one of them,” says Corina Lessa, president of Suncoast Tampa Association of REALTORS. “While it may be innocent, strong scents could be concealing pet odors, smoke, or moisture issues beneath the surface.”
Take note of:
- Air fresheners or plug-ins in almost every room.
- Potent candles, sprays, or other scents.
- Distinctive odors in different areas of the house.
- Musty, smoky, pet, or damp smells beneath the fragrance.
6. The home was previously under contract and returned to the market
A property reappearing on the market after being under contract does not always indicate a problem, but it is worth investigating why the previous deal fell through. Financing issues, appraisal challenges, inspection results, or disagreements over repairs can lead to a terminated contract, so it’s essential to gather more information from the listing agent before making an offer.
Ask questions like:
- Why did the previous contract fall apart?
- Was a home inspection conducted by the previous buyer?
- Were any significant repairs or issues identified?
- Did financing or the appraisal contribute to the contract dissolution?
- Have there been any repairs or changes made by the seller since the previous listing?
7. Renovations that may not have been permitted
While a beautifully renovated property may be enticing, buyers should verify whether major upgrades were completed with the necessary permits. Unpermitted work can raise safety, financing, insurance, and resale issues, so it is crucial to confirm the permit history of the property before finalizing the purchase.
“Do not be swayed by a beautifully renovated surface and overlook the essentials,” emphasizes Corina Lessa at Suncoast Tampa Association of REALTORS. “Water stains, cracks, an aging roof or HVAC system, or renovations that may have bypassed permits are all aspects that a licensed inspector should examine during your due diligence period.”
Questions to address:
- Completed basements, attics, or garages that seem to have been converted into livable space.
- Additions or newly enclosed rooms that are not documented in property records.
- Recent electrical, plumbing, structural, or HVAC work lacking permit records.
- Renovations that appear significantly newer than the rest of the property.
8. A home that appears to be a quick flip
A recently remodeled home is not necessarily a poor investment, but buyers should investigate beyond the new finishes to determine the quality of the work. Hasty renovations may focus on cosmetic updates while neglecting older systems or underlying issues, underscoring the importance of a thorough inspection.
“Be cautious of homes