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Recognizing a Bad Real Estate Deal: Warning Signs that You Should Look Out For

by Marquette Turner Luxury Homes

in Real Estate Radar, Variety

It would be incorrect to state that excellent real estate deals cannot ever be found anywhere in the United States, but they are rare and hard to find, not to mention, when they are authentic, the deal won’t likely be as sweet as fake or controversial ones generally are. To keep your money safe from real estate scammers, dishonest owners, and any other kind of danger during a deal, here are a few signs to look out for.

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Unreasonably Low Price Tags

Just like everybody always says, if a deal looks too good to be true, it most probably is. This means that if the price of the property is surprisingly lower than it should be and without any justifiable reason behind it, there is likely a justifiable reason behind it! The only thing is, you cannot see it because the seller/agent is trying to scam you. Some of the common reasons behind unreasonably low real estate property prices are as follows, but there can be many others as well.

  • The property doesn’t belong to the seller
  • There is severe structural, plumbing or electrical line damage hidden beneath the surface
  • Unpaid taxes, zoning violations, secret mortgage contracts, also make it to the list
  • The property has a history of crime, death and/or other controversial aspects to it
  • It is in a bad neighborhood with high crime rates

Unreasonably High Price Tags

On the other hand, a price that seems too high for the property in question could be due to one of two things, which can be summed up as follows.

  • The seller is a scammer, trying to create false value
  • It is just an inflated price that requires negotiation

This usually happens when the property in question is a “fixer-upper,” so therefore always compare the price of the particular property with the general local prices, before making or even offering a deal.

The Property Has Been Sitting on the Market for Too Long

There is always a chance that if a good property sits on the real estate market for a long time, there is something wrong with it. Even when the price seems reasonable for the property in question, you need to find out why it has not been bought yet, in spite of being in a seemingly lucrative area.

How Do You Know for Sure?

Now that you know the signs of a bad real estate deal, how do you become sure that they really are bad deals? After all, these are just general warning signs and neither are they confirming, nor do they always apply to every situation.

There is an easy way to find everything out and forego all the manual searches on the internet and those public history library visits, which comes in the form of a simple address search via the IntelliusReverse Address Lookup tool. Just put in the address in question and the City/State to find any and all information about the property, right from your laptop or smartphone.

The tool will tell you every little detail about who the property really belongs to, who the residents of the property are, who used to own the property, their contact information and so much more. The search result will also include information about the property’s value, history, legal violations (if any), mortgages, exact dimensions, census information and even information about the neighborhood.

The basic rule of legitimate business in general and real estate business in particular is that you should never pay for anything that you can’t verify in every possible way. If there is controversy and secrecy surrounding a property, it is probably going to be a bad prospect to invest your money in.

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