How to Spot a Great Deal on a House (and Three Red Flags to Be Aware of)

Posted on 16th March 2023

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Are you looking to move home? If so, you’ll want to check out the following tips on how to spot a great deal and the red flags that you need to be aware of.

First, Figure Out Your Budget

Before you can begin searching for houses and find a great deal, you should make determining your housing affordability limit a top priority.

Thankfully, you can use an online calculator to quickly and easily work out how much you can afford.

Compare Prices with Other Homes in the Area

Just because a property has a high price tag, it doesn’t always mean you can’t secure it for a lower price.

You should compare the price of the property with the prices of other homes for sale in the same area to determine whether the seller of the high-priced property you’re considering moving into is trying to get more than the home is actually worth.

Look at the recent sold prices for properties in the same neighbourhood, too.

If you find a property that appears to be overpriced, you have a good chance of being able to negotiate with the seller to secure the property at a lower and more reasonable price.

Look at Properties That Have Been Listed for a While

Many people are put off properties that have been on the market for a long time because they assume there’s something wrong with them. But you should never think like that.

There could be all kinds of reasons why a property hasn’t sold quickly besides things like poor conditions. So, it’s always worth checking out properties that have been listed for a while.

If you find one that is ideal for you, there’s a good chance that you’ll be able to negotiate with the seller to pay a lower price, as the seller will want to shift his or her property as soon as possible.

Many sellers whose homes have been on the market for some time will consider taking lower offers than the price the property is advertised for.

Look at Properties During the Off Season

Property sales are at their highest during the spring and summer seasons. So, if you look for properties during the off-season, you could have less competition. In turn, that means you could get a great deal on a house.

According to Nadia Evangelou from the National Association of Realtors, property prices tend to be around 3% cheaper between September and February than they are between March and August.

Three Red Flags to Be Aware of

When looking at potential houses to purchase, you need to be aware of red flags.

Just because you’re looking for an affordable residence, it doesn’t mean you should simply buy at the lowest price without first checking for any potential warning signs.

Otherwise, you could end up buying at a low price but spending much more than you want to on repairs and maintenance.

You could even find there is structural damage and end up paying way above the odds compared to buying a property at a higher price point that has no issues.

Here are just three important red flags that you need to be aware of.

Foundation Cracks

Most poured concrete foundations will crack at some point, but if the crack is wider than half an inch, you have a problem on your hands.

Large cracks are indicative of an unstable foundation.

Mould

If a house has mould, it could indicate a leak. And if the leak has existed for a long time, you could have to replace things like wood members and carpets.

If you view a property and smell mould but can’t immediately spot it, do a thorough check by looking beneath sinks, around windows, and so on, to find out where the problem is and how major the problem is.

Insect Infestations

Insects like termites can do untold damage to houses, so be on the outlook for any signs of insect infestations when viewing potential houses to buy.

Tell tale signs include tiny brown droppings near a wall and hearing a hollow sound when you knock on wood surfaces.