Yahoo Finance Real Estate Experts: 6 Listing Clues That a Home Isn’t Worth It
Whether you’re buying your first home or adding a property to your real estate portfolio, homebuying is a big move, financially and personally. You want to be sure that the investment you’re making is going to be worth all that effort and money.
However, even when working with a real estate agent, sometimes it can be hard to figure out simply by the listing clues whether the home has everything you need or whether it has a bunch of red flags.
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While there may always be surprises, there are some listing clues that give away the fact that a home might not be worth your investment. Experts explain.
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Underwhelming Description
Anytime a listing does not paint an amazing picture of the home or leaves too many things to the reader’s imagination, there is a chance the home is not worth it, according to DJ Olojo, a real estate investor and host of the podcast “The Foreclosure Fix.”
“Words like dated, sold as is, TLC, fixer upper, highly motivated, etc., all indicate there is room for negotiation,” he said.
Also, when a property is back on the market multiple times, it indicates that there could be a problem with the home.
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Bad Photography
If the photos are blurry, vague, taken at odd angles or just plain bad, or if they don’t showcase the entire home, this might indicate a less-than-ideal home, Olojo said. “Either the agent is inexperienced and does not know the value of professional listing pictures or is too cheap to pay for quality. Either way, it does their client a huge disservice,” he explained.
The only benefit to a buyer is that sometimes this puts you in a good position to negotiate a lower home price. “I speak from experience and have personally sold a property for $30,000 less due to low-quality pictures. Pictures are everything in today’s online world, and first impressions are key,” he said.
According to Olojo, “The best listings paint a picture that makes the potential buyer fall in love with the property without seeing it.”
Lack of Specifics
A lack of specifics about the property or tenant improvements is often a dealbreaker, according to Matt Morgan, a licensed California real estate salesperson with IPA Commercial Real Estate.
“Vague descriptions about the building size, amenities or condition indicate the seller doesn’t know much about the property or is trying to hide issues,” Morgan said.
Above-Market Asking Price
Another clue that should make you run for the hills is if the price seems way off compared with recent comparable sales, Morgan said. “[T]he seller is likely unrealistic or desperate. Either way, a buyer will have trouble negotiating a fair deal,” he explained.
A Long Time on the Market
While every market is different, if a property has been on it for too long without a contract, Morgan said there is usually a reason buyers are passing it over, such as it being overpriced, having deferred maintenance issues or having structural problems.
In his market, if a retail or office property has been listed for over six to 12 months without going under contract, it’s a bad sign.
Lack of Traffic or Tenant Interest
If your goal with the property purchase is to generate rental income, then you want to make sure the property is in an area where prospective tenants actually want to live, according to Morgan.
“I always drive by listings to see the surrounding area and check for ‘for lease’ signs. If a property seems devoid of traffic or interest from potential tenants, it will be hard for a buyer to generate income from it,” he said.
A solid listing, on the other hand, will have high-quality photos, specific details about the building and any improvements, and a reasonable asking price based on the local market, and it will show signs of interest from potential buyers or tenants.
No matter how eager you are to buy, do your due diligence and research before you commit. Once you’ve bought it, all its problems become yours.
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This article originally appeared on GOBankingRates.com: Real Estate Experts: 6 Listing Clues That a Home Isn’t Worth It
