U.S. home prices rose by 0.10 percent in July according to the S&P Case-Shiller Housing Market Index. San Francisco, California edged past Denver Colorado with a year-over-year price increase of 10.40 percent as compared to Denverâs reading of 10.30 percent. All year-over-readings for the 20-City Home Price Index posted gains, but Washington, D.C. showed the lowest year-over0-year growth rate at 1.70 percent. Chicago, Illinois and New York City followed closely with year-over-year readings of 1.80 percent and 1.90 percent respectively.
If you’re looking to purchase real estate, keep in mind that the homes you are considering might be in need of repairs or improvements.
In a recent study done by a major home inspection company, at least 40 percent of previously owned homes on the market have at least one serious issue or defect.
When buying real estate, you should have a professional inspection performed on the property to look for any issues that might not be visible to the untrained eye.
It’s better to identify this damage before you buy so that you are not stuck with budget-busting renovations.
Below are a few major red flags you should look for when buying a home.
Look at the slope of the yard. If the land slopes towards the house, this could be causing water to run down into the foundation, which will result in moisture damage. Take a look at the foundation for any bulges or cracks that could indicate serious issues.
Your home inspector should be sure to check the electrical wiring — especially if it is an older house. If there are any flickering lights, circuits that don’t work, or warm outlets, these are telltale signs of wiring issues that might be expensive to fix.
This is usually a sign that something in the house is leaking. Ceiling stains are common underneath bathrooms when a toilet, shower or bathtub has a leak. A leaky roof could be an even more expensive repair.
When you are negotiating to buy a house and damage is discovered, you can either change your mind about the sale or renegotiate for a lower price that factors in the cost of repairs. Either way, it is always worth having the home professionally inspected to identify red flags and avoid any surprises.