Merit Real Estate

Home-Buying Red Flags

Purchasing a new home is likely the largest single investment that you’ll make in your lifetime. It can be scary and uncertain when you’re making such a huge commitment to not have a clear picture of what you’re buying into. Even with home inspections, there are still some red flags that you should look for as you evaluate a home for purchase.

No Representation Clause in Disclosures

A disclosure statement is – second to a home inspection – the most telling document that you will receive during the home buying process. In states like North Carolina, sellers are allowed to add a no representation clause to any of the home elements that they choose. If there is a no representation clause included in your home’s disclosure statement – particularly if it’s around a critical home element like the basement or roof – you should definitely consider this a red flag. It’s not a reason to back out of a sale, but you should let your home inspector know that you want special attention paid to that area of the inspection.

Flood Damage

If there is any mention of previous flood damage in your disclosure statement or home inspection report, this should be a major red flag for you. Homes that sit in a floodplain will not only cost you more in flood insurance (starting at around $5,000 per year in most areas), but they also are at significant risk for future flooding if no contingencies have been put in place.

Lack of Roof Details

A roof replacement is one of the priciest improvements to a home. An old roof shouldn’t scare you away from a home, but you should pay special attention to potential leaks or weak spots during an inspection. An old roof can also be a prime negotiation point, as you will be looking at about a $10,000 roof replacement bill after closing.


To learn more about Merit Real Estate and the services we provide, visit us online at or call (310) 379-4444 today.