Buying a home is a significant financial investment. The last thing you need is for it to turn into a money pit after you’ve already taken out a mortgage and started living there.
Over the last two decades of my professional real estate career, I’ve compiled a list of red flags to avoid during your home shopping journey. Some are obvious budget drains based on the type of property, while others are problems hiding deep below the surface and might only be uncovered during a home inspection.
To save you the trouble of finding out the hard way, here are a few warning signs on the types of homes you should never buy.
You’ll save money in the long run by identifying potential issues early. Here’s what you should be looking for during a home inspection:
✔️ Structural issues: Cracks in the foundation, walls or ceilings can indicate serious structural problems.
✔️ Plumbing and electrical systems: Old or faulty systems can be hazardous and expensive to replace.
✔️ Roof condition: A worn-out roof can lead to leaks and water damage.
✔️ Water damage and mold: These can cause health issues and require costly remediation.
A next-door neighbor of one of my real estate clients recently bought a home. To be more competitive position and speed up the process, they had waived an inspection. After a few weeks of heavy rain, they discovered the previous owner had buckets in the attic to catch the rain from the leaky roof. The buckets had filled up and were overflowing into the ceiling, leading to thousands of dollars in unexpected repairs. The situation could have been easily avoided with a thorough home inspection.
7 types of houses you should never buy
In a recent YouTube video, I went over the types of properties you should avoid. Here’s a summary.
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1. Flipped houses
Many flipped houses are poorly refurbished by inexperienced investors looking to make a quick profit. They often cut corners on visible and hidden issues. If you can see obvious flaws, imagine the problems you can’t see. Always make sure that permits were pulled and work was done by licensed contractors.
2. Houses on hills or near major streets
Properties on hillsides without proper structural reinforcement can be prone to erosion and landslides. Houses near major streets, freeways or railroads suffer from noise issues, which can significantly reduce their resale value.
3. Houses with foundation issues
Structural problems, such as cracks in the foundation, can be costly to repair. Avoid homes with significant foundation issues since they can affect the entire structure.
4. Houses with old galvanized plumbing
Galvanized plumbing can rust and lead to water quality issues. Eventually, these pipes will need to be replaced, which can be expensive.
5. Houses with electrical issues
Old wiring, like knob and tube or aluminum wiring, poses fire hazards and can be costly to update. Buzzing panels or visible electrical issues should be a red flag.
6. Houses with mold
Mold can be a severe health hazard and difficult to remediate. Extensive mold problems often indicate underlying water damage that needs to be addressed.
7. Houses that need a new roof or have flat roofs
Replacing a roof can be expensive, especially if the entire roof is flat, which can lead to drainage issues. Flat roofs have a shorter lifespan and can lead to ongoing maintenance problems.
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Always check on home insurance before you buy
Before buying a home, check if you can get home insurance based on its location. Some insurance companies deny coverage for homes in certain areas due to risks like floods or fires. Verify that all necessary permits were pulled for any renovations, and make sure there are warranties for significant appliances and systems. Never close on a home without doing a final walkthrough to confirm its condition.
Location, location, location
While the quality of a property is key when buying a home, location can’t be overstated: Even if you find the perfect home without any major issues, you can’t pick it up and move it to a more desirable place. Research the quality of local schools, safety and business investments in the area, which can significantly impact your home’s value as well as your quality of life. But also remember that neighborhoods can and do change over time.
Nothing is an absolute
There are always exceptions to the rule. Sometimes older houses can be better constructed than newer ones. Balancing location, affordability and the condition of the home is a challenge, but being diligent and informed will empower you to make the best decision.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.
Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.
The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.
Wednesday was the last day for advance voting, which started on Oct. 10.
More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.
Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.
An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.
This report by The Canadian Press was first published Oct. 17, 2024.
