Written by: Emily Joswiak • December 9, 2021• Investing

Red Flags To Look Out for When Investing in Real Estate

Before you get involved in real estate, you should know that even a great deal can have unexpected downsides. Here are red flags to look out for.

Real estate investors both new and experienced have a lot to keep in mind when deciding where to make their next move. From evidence of water damage to restrictions on what you’re allowed to see, here are some red flags to look for when investing in real estate.

Restrictions on What You Can See

If a seller ever gives you trouble when you want to see a property, you know something’s wrong. Never purchase a property you haven’t seen, no matter how good the deal seems. You never know how much money you’ll need to spend on repairs to make a nightmare home livable.

This includes properties that the sellers show, leaving out a particular room. They may make reasonable excuses like, “There’s construction going on in there,” but make sure you see for yourself. Always review every square inch of a property before any money changes hands.

Sellers With Emotional Attachments

Homeowners selling their family house aren’t always an issue, but it’s something to keep in mind. You’ll know you’re dealing with an emotional seller when they refuse to discuss reasonable prices because the house means so much to them. It’s best to catch these situations early before you sink too much time into them, so be on the lookout for sellers who want too much.

Overeager Agent

There are quite a few warning signs that you’re working with a bad agent, but over-eagerness is a dead giveaway. A good real estate agent is willing to tell you when you’re asking for too much, and an overeager agent is too focused on pleasing you.

After all, the agent is supposed to be the expert. If your agent doesn’t seem to know any words other than “yes,” they might steer you into some tricky waters.

Now that you know these red flags to look out for when investing in real estate, spend your money wisely to ensure a good ROI!

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Last modified: December 9, 2021