When looking through real estate, it’s easy to be drawn to properties with low prices. Residential property in Melbourne costs thousands of dollars as it is, so purchasing something cheaper on the market might seem like a good investment at first. However, in time, you may find that not every property investment is a great one.

 

There are some red flags you need to watch out for when looking through property listings to know if a property’s value is genuine. Reg flags such as unresponsive property sellers, overpricing and lack of property photos are easy to spot when you know where to look which is why a real estate agent can help you out. They are seasoned professionals who understand what warning signs to look out for and can help wade you through the heightened emotions of finding the right property.

 

Marked down properties often come with a catch that can cost you in repairs and upkeep. Not to mention the physical and emotional toll the property may have on you down the line, as you struggle to maintain its facilities and look for tenants to occupy the residence. 

 

It’s important to know all the details of the property before committing to any payments or deposits. Remember, buying real estate is a huge investment, so you’ll want to steer clear of duds to avoid any potential losses. 

 

To help make the right investment choice here are four important factors to keep in mind when looking to invest in real estate: 

 

1. Age – Knowing when the property was built helps to assess the level of repairs and changes it may need. 
2. Location – The neighbourhood where the property is situated affects its price and marketability to tenants or homeowners. 
3. Maintenance –  Check the property’s condition to estimate how much you’ll need to budget for maintenance expenses. This can include repairs on electrical wiring, roofing and water and pipe damages.  
4. Landscape – You’ll need to know how the surrounding trees and plants affect the underground systems of the property, especially since this may become an added maintenance cost in the future. 

 

Keeping these factors in mind will allow you to gauge whether the listing can be a worthwhile investment or not. 

 

Hiring a professional real estate agent to assist you in finding your ideal residential property will help ease the stress. An experienced real estate agent can shortlist property listings that meet your price range and standards and guide you towards properties that are worth their value as well as spot red flags in property listings that you may have overlooked during your search.  

5 red flags that a real estate agent can spot

 

To the untrained eye, many property listings can appear promising but are actually not suitable for your needs and don’t match what you are looking for. This can lead to a frustrating waste of time as you view yet another property that doesn’t meet your expectations or worse, leads you to purchase a property you later regret. A good real estate agent is able to see red flags in property listings and devise a plan to help you find the best matches for the real estate you are looking for. 

 

Here are five red flags that a real estate agent can spot in a property listing. 

1. The price is too low 

 

As a buyer, it’s easy to be swayed by a low price, thinking that you’ve saved a few thousand dollars on your purchase. But buying a property that’s lower than fair market value can be a sign that there’s something wrong with the property or its surroundings. 

 

Remember, property prices vary according to condition and location. If the property is significantly lower priced than similar properties for sale there’s probably a reason. It might be hiding underlying issues such as poor condition, situated in a bad neighbourhood or in a flood zone. 

 

These factors turn into another expense once you’ve purchased the property and the costs to maintain it can add up over the next few years, potentially causing you to spend more than the property is worth to repair and maintain it. 

 

It’s important to compare prices to know if the property’s value is too good to be true. 

 

A real estate agent can provide you with a comparative market analysis (CMA) so you can assess if the value matches with other properties. This allows you to make a quicker and more informed decision on whether or not to continue considering the property listing for your real estate investment, saving you time and money in the process.  

1. The property has been renovated several times

 

Newly-renovated homes can appear inviting to many real estate investors, but if it’s been altered multiple times by different owners, it can indicate that the property may not be up to par with building standards. 

 

Properties that have gone through multiple changes may be hiding slap-dash renovations that are not up to code, costing you hundreds, if not thousands to put right.

 

Additionally, if the house was a flip, you’d need to do extra research on the developers who handled the changes because some companies cut corners to make for a speedy renovation and turnover process. 

 

You also have to be careful about seeing fresh paint in property showings. This can be a red flag for many investors as fresh paint is often used as a cover-up for issues like water damage, mildew or mould. 

 

To be safe, it’s best to have your real estate agent do some background research on the property and schedule an inspection. Through this process, the agent will be able to learn more about the property’s renovation history and advise you on what you can do next based on the findings. 

1. The listing description is misleading and lacks good photos of the property

 

Property listings that use vague words, exaggerate their claims and have blurry and stretched out photos (or no photos at all)  are also things a real estate agent will be able to identify as red flags. 

 

When the property listing has more photos of the neighbourhood or landscape than the actual property, then it might be hiding major problems within the residence. It’s advisable to avoid these properties completely or ask the help of a real estate agent to check the property over and see what the problems are. 

 

A good property listing presents buyers with realistic expectations, as well as addresses major issues that come with the property. These are the kinds of property listings you should focus your attention on, as they present themselves as dependable and truthful ads. 

 

If the listing does specify a potential flaw, look to see if the seller or realtor offers suggestions to fix the issue.

 

1. The property has been on the market for a long time 

 

If the property has been in the market for years or has been repeatedly brought back for sale, there may be an underlying issue that lets the property fall through with buyer deals. This can be because: 

 

• The property is too damaged
• The property is too far from major transportation hubs
• The property is located in a bad neighbourhood 
• The property had too many inappropriate renovations
• The seller is unresponsive 
• The price is too high for the property’s actual value 

 

Knowing the reason behind these failed property deals not only saves you money, but it also saves time. With this information, you’ll be able to steer clear of bad property investments and devote your energy and resources to more suitable property listings. 

 

Your real estate agent will be able to tell you the average number of days it takes to sell similar properties in the local area to provide comparisons. 

1. There are many neighbouring properties up for sale

 

Initially, having a lot of properties in the area for sale may seem like a positive since you have more choices for purchase, however, for real estate agents, this can be a red flag that there may be a bigger problem. 

 

Issues to consider in these instances can include a high crime rate, noise pollution or planned property developments which can contribute to why so many properties are up for sale in the area. 

 

It’s important to research the property before committing to it. A real estate agent who has knowledge of the local market may have insider information and clues to help you make an informed decision on your purchase. 

 

Being able to identify the red flags in property listings can help you avoid potential loss from a poor property investment and save you time and energy in the process. An experienced local real estate agent can help reveal traps and hidden tricks you might otherwise miss and steer you towards the property listings within your budget that are best suited to your needs. 

With the help of a professional real estate agent, you can ease the stress and emotion of finding a worthwhile property investment. To know more about the property listings in Melbourne you are researching for your home purchase contact us at Nicholas Scott Real Estate.