Signs A Home May Be Under Market Value
Posted on March 26, 2013
When it comes to buying a new home you may be experienced, inexperienced or simply eager to become a homeowner and get settled in a new place. Often times, sellers can sense when a buyer is inexperienced and they will try to “throw a fast one” on them. Below is a list of signs that a house may be under market value. When looking to buy a home, make sure the risk factors are not an issue with your choice!
Short sales can be a scary deal. The main reason a home is being sold as a short sale is to either to reduce the price to get the buyer-hungry persons attention, or to try to get you to overlook a major detail on the home and get you to buy quicker. If a home is being sold as a short sale, take a second or third look and wonder why they are.
The location of a home cannot be changed, even though we greatly wish it could be. If a homes sale price is below market value because of the location, take into consideration that when it comes time for you to sell the home, you will have to reduce the price as well.
Trying to get a home sold that requires great work is not the best idea. When a home needs substantial work, the price will often match the regular market price or way exceed the regular market price. Perhaps the home you are looking at has a large foundation crack, which will cost $4,000 to repair, is it really worth it to you? If you see a home with repairs, ask yourself if it is really what you are looking for and if you can truly take on the task and expense. If it is not, then buy a slightly more expensive home that is move-in ready!
Water Damage and Mold
Although they are types of repairs, water damage and mold can be a huge problem for a home. If you are doing a walk through of a home, take time to actually inspect the home. If you notice these signs of water damage, then you may also be facing some mold since mold stems from water damage.
Signs of Water Damage:
- Peeling of wallpaper or baseboards
- Watermarks on carpet, walls, or ceilings
- Swollen doors and wood furniture
- Unexplained moisture in flooring and on walls
Signs of Mold:
- Visible signs of water damage
- A musty smell in home
- Allergy-like symptoms
- Mold-like speckles on various surfaces in home
By Talia DiFulvio