Sometimes you need to do a little digging to know if a community is worth buying in. Luckily, realtor.com identified seven red flags that should give you pause before you sign on the dotted line.
Of course, the hue of this particular red flag depends on the reason for those “For Sale” signs. Perhaps the neighborhood is rapidly gentrifying and longtime residents have decided to cash in. Maybe there are many older residents who are downsizing. Or maybe there’s a more sinister explanation, like increasing crime rates. Do your homework to assess the situation before making any big moves.
Decreased disposable income indicates a neighborhood on the decline. If homeowners don’t have money for dinner out, they probably don’t have cash for upkeep. Shabby homes drag down property values. Meager cash flow can also lead to future foreclosures—and a foreclosed-upon home is a neighbor that no one wants.
It’s best to visit at night or on weekends to really tell what will be available to you once you live there. Unless you commute primarily by foot or bike—or you’re OK spending your weekends circling the block—the neighborhood may not be a good fit for you.
Plus, problems with the homes next door can indicate bigger issues than meet the eye. Look at every house on the block for issues such as water pooling in the yards, or flickering porch lights.