Real Estate Investing

10 Red Flags in property to Save Loss


Adnan Ul Haq

Module 2:Real Estate Mistakes and Frauds

10 Red Flags in property to Save Loss

Adnan Ul Haq

10 Red Flags in property to Save Loss

Buying a house is one of the biggest investments you'll ever make. It's important to do a thorough investigation of any property before buying, and if there are red flags present, then it might not be worth your time and money. 

Here are these 10 red flags to look for while investing:

  • Check Propertys’ Demand and Supply

It is always important to check the supply in an area before considering any offer. If there are a lot of available houses, then this could mean something is wrong somewhere. 

It means no buyer is coming. Check it properly because this means there is some issue with the area.

  • Check Cleanliness

The condition of the housing society can be judged by the cleanliness and safety of an area. It is best to buy property in a clean area because rich people like to reside among good neighborhoods with cleanliness and safety. 

  • Check Propertys’ Structure

The third thing is to check its structure before you buy. Whether the roads of the society are small? Can proper vehicles pass through them? Is there a parking facility? Are there other facilities? What is the structure of the house? 

You must consider all these questions before buying a property. What if you have invested a lot of money, but you are unable to park the car in your house due to its size. 

If the structure is not good, do not buy it because it's a red flag, and no good buyer will come here if you want to resale it.

  • Check Pests Issue

Usually, the big and grand plazas have pest issues. The pests get into the pipes and do not go no matter what. The building is totally destroyed, and its value also drops. 

So do not invest in places where there are pest issues. Some places also have snakes due to surrounding areas.

  • Check Walls Properly

The fifth is to check if the paint is fresh. Mostly, the fresh paint is done to conceal some issues. Some do it for maintenance which is good, but you should investigate and ask why they applied fresh paint. Whether the wall has any issue or the paint is done for maintenance only.

  • Check Smell Issues

The bad smell could be due to several reasons. One reason is a dirty watercourse, and the other is that the drainage is not proper. Check it properly. Have they lit a lot of candles to reduce the smell? Or have they tried to conceal the smell by excessive air freshener? It means they are covering up something. Analyze properly before buying.

  • Check Seepage Issues

Check the walls whether they have water stains or not. This is because water stains are mostly due to faulty pipes and drainage when it stays for a long time. It affects the foundation of the property, so it is important to investigate it properly and thoroughly. 

If you see this issue while buying, this means you will have to invest a lot in repair and investment, and it will be difficult to resell it.

  • Check the Buildings’ Foundation

Check that there are no cracks in its foundation. Mostly, the foundation is not properly laid, and there could be a lot of issues with cementing. If there are cracks, then the foundation is not good, which means the entire construction is not good, and you should not buy it. 

  • Check the Advertisement Properly

Analyze what the person has claimed in the advertisement and what are the ground realities. If the ground realities are similar to what has been said in the ad, then it is a reliable place you can buy it. But if there is so much difference between reality and advertisement, then investigate properly, or we recommend not to buy such property. 

  • Check Drainage Issue

Check the drainage issues. If there are no proper channels for water to flow, then your property will be devalued. This is because it won't be properly drained, causing more maintenance work on top of what already needs to be done.

You can save a lot of money and avoid many headaches by doing some research before you buy. Make sure that the property has a clear title, check with local agencies about any new developments, etc., and keep these 10 points in mind to avoid any kind of hassle.