Finding the right home for you to the point where you’re ready to make an offer is something that can give you an amazing feeling. However, before you start dishing out any money, it’s important to really look around the neighborhood and keep an eye out for any potential red flags when purchasing a home.
Here are three of those red flags that you should always keep an eye out for when it comes to purchasing a home.
Too Many Available Homes
If there are generally two or three homes listed on the market in a neighborhood, this typically isn’t an issue; however, if there are multiple homes for sale in one neighborhood, this is a sign that you should think about looking somewhere else. This is because this is something that points to both pricing pressure and illiquidity in the housing market, both of which are considered to be huge risks for buyers.
Fewer Students Enrolling in Schools
Schools located in healthy communities should typically be increasing their enrollment on a steady basis. If their enrollment is found to be shrinking, this should be treated as a red flag for that particular community, and a number of reasons could be contributing to this, such as the following:
- Reputation for poor management
- Residents remaining in the neighborhood after children grow up
- Parents opting for private or charter schools
Many Empty Storefronts
Having many vacant storefronts in a neighborhood is also a huge red flag when it comes to purchasing a home. Generally, this is a sign that there is less disposable income among residents than there previously had been before, which is a heavy indication that the neighborhood itself is on the decline. This unfortunately also means that those who reside in the neighborhood likely don’t have the necessary funds for proper upkeep.
Thank you for reading our real estate and homeowners’ blog. We are Weichert Realtors – Barton Harris & Co. and we’re happy to have helped you with red flags when purchasing a home.