Experts Warn Homebuyers of Red Flags Beyond Climbing Interest Rates

Oct 3, 2022 - 12:53
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Experts Warn Homebuyers of Red Flags Beyond Climbing Interest Rates

If you're thinking of buying a home, you're not alone. In recent years, houses have been selling like hotcakes, with sellers often receiving tens or even hundreds of thousands of dollars over asking price. But some experts are cautioning would-be homeowners about quickly jumping into the home-buying pool without first doing their homework.

"Listing prices are still high, and combined with the higher mortgage interest rates, people are going to be overpaying for their homes," says Mark Weiss, a real estate agent in Los Angeles. "Buyers need to be careful not to get caught up in the frenzy and pay more than they can afford."

Weiss advises potential homebuyers to look beyond just the purchase price of the home. "Interest rates are important, but there are other red flags to watch out for," he says. "For example, many homes are being sold 'as is,' which means the buyer could be stuck with expensive repairs."

He also recommends that buyers get a thorough inspection before making an offer on a home. "An inspection will reveal any hidden problems that could end up costing you a lot of money down the road," he says.

So if you're thinking of buying a home, take your time, do your research, and be sure to work with a qualified real estate agent who can help you navigate the process. With careful planning, you can find the perfect home without overpaying.

As interest rates continue to rise, experts are warning homebuyers to be on the lookout for other potential red flags that could impact their purchase.

According to mold remediation specialist Joe Aakjar, one of the biggest dangers is hidden mold. "In some cases, the mold isn't visible," he said. "If I'm doing an inspection on a Manhattan apartment at the top of a 30-story building, I may not actually see evidence of mold, but an air test will indicate that mold is present. Then we have to start looking for it."

Concerning new construction, Aakjar cited other common problems, such as undersized boilers or air-conditioning units, improper insulation, poor-quality windows, and foundation cracks.

Homebuyers should be aware of these potential hazards and factor them into their decision-making process. With careful planning and due diligence, they can avoid costly mistakes down the road.

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