Top 10 Red Flags to Watch for When Buying a Home

By Trent Osborne | Century 21 Investment Realtors
#PrimePropertyPlaybook

Buying a home is one of the biggest financial moves you’ll ever make—and sometimes, what’s hidden beneath the surface can turn your dream home into a costly nightmare. Whether you’re attending an open house or already under contract, it pays to know the warning signs that could signal problems ahead.

Here are 10 major red flags to watch for when buying a home—and what they might really mean.

1. Cracks in the Foundation or Walls

Some minor settling is normal in older homes, but large horizontal cracks, stair-step patterns in brick or concrete, or doors and windows that don’t shut properly could indicate structural problems. These issues are not only expensive to fix but can affect the long-term stability and value of the home.

What to do: Look for cracks wider than ¼ inch and ask for a structural inspection if anything seems off. Don’t rely solely on a general home inspector for this—bring in a specialist if needed.

2. Strong Odors or Heavy Use of Air Fresheners

A faint smell of fresh-baked cookies is one thing—but if the home is overloaded with candles, diffusers, or plug-ins, the seller might be masking a problem like pet damage, mold, smoke, or sewer issues. Trust your nose—it’s one of the best inspection tools you have.

What to do: Ask for a few minutes without scents, if possible, or return for a second showing. Also, pay attention to any “musty” smells, especially in basements or bathrooms.

3. Fresh Paint in Isolated Areas

While fresh paint throughout the home can be a good sign of a seller preparing the property well, isolated spots of new paint—especially on ceilings, around windows, or near the foundation—might be hiding water damage, mold, or previous repair work.

What to do: Ask why that particular area was painted and whether any repairs were made. A seller’s disclosure should note this, but don’t hesitate to press for details.

4. Signs of Water Damage or Mold

Look for water stains on ceilings, buckled flooring, bubbling paint, or discoloration on drywall. Mold is more than an eyesore—it can lead to health problems and expensive remediation, especially if it’s growing behind walls or under floors.

What to do: Check under sinks, behind toilets, around the water heater, and in the basement. If you’re even slightly concerned, request a mold inspection.

5. Poor Drainage Around the Exterior

Water should flow away from the house—not toward it. Pooling water, sunken landscaping, or mildew along the base of the home can all signal poor drainage. This can eventually lead to basement leaks or foundation damage.

What to do: Check the grading of the yard, inspect downspouts and gutters, and look for water marks near the home’s perimeter. These are easy to overlook during a sunny open house but costly to fix later.

6. Roof Issues or Missing Shingles

The roof is one of the most expensive parts of a home to replace, so take a good look. Missing, curling, or cracked shingles can indicate the roof is near the end of its lifespan. Sagging sections or visible mold/algae are also signs of trouble.

What to do: Ask the age of the roof and request any warranty paperwork or documentation from past repairs. Your inspector should also climb up or use a drone to check areas not visible from the ground.

7. Outdated Electrical or DIY Wiring

Old or DIY electrical work can pose a serious fire hazard—and it can also make it hard to insure or finance the home. Flickering lights, missing outlet covers, or too many extension cords can all be signs of a system not up to code.

What to do: Pay attention to the electrical panel and look for signs of tampering or outdated materials like knob-and-tube wiring or aluminum wires. If in doubt, have an electrician review it.

8. Uneven or Sloping Floors

Sloping floors can be a subtle but serious sign of foundation problems or subfloor rot. Sometimes the fix is simple—but sometimes, it’s a $20,000 issue.

What to do: Walk around slowly, feeling for soft spots or dips. Take a marble or small ball and see if it rolls in certain rooms. An uneven floor is worth further investigation.

9. Pest Infestations or Droppings

From termites to rodents, pests can do major hidden damage. Chewed wiring, droppings, small entry holes, or tapping sounds in the walls can all signal infestation.

What to do: Look inside cabinets, attics, and basements. If you see signs, ask when the last pest inspection or treatment was done—and consider hiring a pest inspector before you proceed.

10. Too Many “As-Is” Statements in the Listing

Some “as-is” listings can be fine, but when the home is being sold with zero warranties and little disclosure, it should raise a flag. It usually means the seller either doesn’t want to fix issues—or knows something you don’t.

What to do: Proceed with caution. Get a thorough home inspection and potentially more specialized ones (roof, foundation, HVAC, etc.). If the seller refuses to negotiate on repairs, make sure you’re financially prepared for what’s ahead.

💡 Final Tip: Don’t let charm and staging distract you from reality. A beautiful kitchen means nothing if the roof leaks or the wiring is unsafe. The right questions—and a good inspection—can save you thousands.