Don't Walk Into a Bad Deal
Most buyers rely on inspections to catch problems. By then, you're already under contract, emotionally invested, and often pressured to close anyway.
After 40+ deals in Plymouth County and years as a contractor, I've learned to spot expensive problems during the walkthrough—before making an offer. This guide reveals the 7 red flags I look for in every property.
Foundation Cracks & Settlement
What to Look For:
- Horizontal cracks wider than 1/4 inch (indicates pressure)
- Stair-step cracks in brick or block foundations
- Bowing or bulging basement walls
- Doors/windows that stick or don't close properly
- Sloping floors (use a marble—if it rolls, there's settling)
- Water stains on foundation walls (indicates ongoing moisture issues)
Outdated or Dangerous Electrical
What to Look For:
- 60-amp or 100-amp service (modern homes need 200-amp)
- Knob-and-tube wiring (white ceramic knobs in basement/attic)
- Aluminum wiring (common in 1960s-70s homes)
- Fuses instead of circuit breakers
- Two-prong outlets throughout (no grounding)
- Scorch marks around outlets or panel
- Extension cords used as permanent wiring
Plumbing Problems & Water Damage
What to Look For:
- Galvanized steel pipes (silver/grey, installed before 1960s)
- Low water pressure throughout the house
- Rust-colored water when you run the tap
- Multiple drain clogs or slow drains
- Water stains on ceilings (indicates leaks above)
- Sump pump running constantly (high water table issue)
- Septic system age (30+ years = replacement soon)
Roof Age & Condition
What to Look For:
- Roof age over 20 years (asphalt shingles last 20-25 years)
- Missing, curling, or cracked shingles
- Dark streaks or moss growth (indicates moisture retention)
- Sagging roof line (structural issue)
- Multiple layers of shingles (adds removal cost)
- Granules in gutters (shingles breaking down)
Need Help Spotting These Red Flags?
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What to Look For:
- System age over 15 years (typical lifespan is 15-20 years)
- Furnace model number shows manufacture date (first 4 digits = month/year)
- Rust or corrosion on heat exchanger
- Loud noises when running
- Rooms with uneven temperatures
- No maintenance records (systems need annual service)
DIY or Unpermitted Work
What to Look For:
- Finished basements with no egress windows (illegal bedroom)
- Added rooms or additions without permits
- Removed walls (could be load-bearing)
- Amateur electrical work (wires stapled to studs, junction boxes exposed)
- Mismatched or obviously DIY finishes
- Seller can't provide permit history when asked
Hidden Costs: Oil Tanks, Wells, Septic
What to Look For:
- Buried/abandoned oil tanks (check for fill pipe outside)
- Well water systems (test required, pump replacement $1,500-$3,000)
- Septic systems over 20 years old
- High radon levels in basement (mitigation = $1,200-$2,500)
- Lead paint in pre-1978 homes (abatement = $8,000-$15,000)
- Asbestos in old homes (removal = $2,000-$10,000+)
How to Use Red Flags to Negotiate Better Deals
Spotting red flags is only half the battle. Here's how I use them to negotiate as an investor—and how you can too:
Don't just say "the roof needs work." Call a roofer, get a quote ($12,000), then deduct it from your offer. Concrete numbers kill seller objections.
One issue? Seller might brush it off. Three issues? Now you have leverage. I recently negotiated $40,000 off a Plymouth house by documenting foundation cracks, old electrical, and a failing septic system.
"I can offer $450K as-is, or $480K if you replace the roof and upgrade the electrical before closing." This gives the seller options and often gets you a better deal.
Always include an inspection contingency. When issues are found, renegotiate. I've saved buyers $20,000-$50,000 by renegotiating after inspection on deals in Plymouth County.
Some houses are money pits. If you're seeing 4+ red flags, the seller won't negotiate, or your gut says no—walk away. There are always more houses. I've walked away from dozens of deals that would have cost me later.
Hidden Costs Buyers Forget to Budget For
Beyond the purchase price, here's what most buyers don't account for in Plymouth County:
- Closing Costs: 2-5% of purchase price ($10,000-$25,000 on a $500K home)
- Property Taxes: Plymouth County average = $8,000-$12,000/year
- Homeowners Insurance: $1,500-$3,000/year (more if near coast)
- Immediate Repairs: Budget 1-2% of home value ($5,000-$10,000)
- Moving Costs: $1,500-$4,000
- Maintenance Reserve: 1% of home value per year ($5,000/year)
- Total Hidden Costs: $30,000-$60,000+ in first year