Home inspector with client.
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Buying a home can be a great investment, but buyers must choose wisely.
Properties in need of substantial repairs or renovations can drain a buyer’s bank account.
Two experts provided five red flags that may indicate a home isn’t worth your money.
A home can be a lucrative, life-changing investment … but it can also be a complete money suck. Before taking the leap to purchase a property, prospective buyers should carefully consider whether a home exhibits any red flags.
Of course, many homebuyers are willing to make updates and renovations. Oftentimes, however, the cost of correcting a home’s flaws can outweigh the value of the investment. Even worse, a property’s issues can be beyond repair.
Loren Howard, founder of Prime Plus Mortgages, and Shri Ganeshram, founder and CEO of Airbnb property-management company Awning, provided Insider with signs that a home might not be worth your money.
Structural issues are often deal breakers
According to Howard, cracks in the foundation or walls, as well as uneven floors, might indicate that the property has fundamental, hard-to-solve problems. Other visible signs of structural issues include cracks in the floors, according to Ganeshram.
Ganeshram believes homes with structural problems may not be worth the investment.
“A house may seem like a dream come true, but if the foundation is crumbling beneath you, it’s a nightmare in the making,” he said.
“A house is only as strong as its foundation,” he added.
Electrical problems can be dangerous — and may drain your bank account
This is one aspect of home inspection that absolutely must be evaluated by a professional, according to Howard.
“Outdated or faulty electrical systems can be a major safety hazard,” Howard told Insider. In addition to putting a buyer’s safety in jeopardy, repairs to malfunctioning electrical systems can be costly, he noted.
Ganeshram agreed, saying, “If you’re walking through a home аnd the electrical system looks like a tangled mess, that’s a clear sign that you may be in for some shocking surprises.”
Poor insulation can cost you in the future
Drafts, cold interior walls, and uneven temperatures across the home — for example, cold temperatures in some rooms, and warm temperatures in others — might be signs of poor insulation.
This issue could lead to high energy bills once you move in, according to Howard.
Be cautious if you see leaks and water damage
A ceiling with water damage.
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“If you’re constantly playing catch-up with leaks and water damage, you’re not investing in a home, you’re investing in a money pit,” Ganeshram said.
Poor ventilation can lead to a variety of issues
“Houses are like people; they need to breathe,” Ganeshram said. “A poorly ventilated home can be a breeding ground for mold and mildew.”
When it comes to mold, excessive patching on the walls can be a cause for suspicion.
“When the walls of a home appear to be hiding secrets, there’s a good chance that they are,” he added.