Buying a home is a massive investment in your future, but it’s also a serious legal and financial commitment. Unfortunately, too many buyers fall in love with a property’s potential, only to find out later that it’s subject to lawsuits or has problems with the title. Below are some red flags to look for if you’re thinking of buying real estate.

Signs There Might Be Problems With a Property

1. Lawsuits

Pending or past lawsuits could indicate a boundary dispute with a neighbor, problems in the neighborhood, or other issues you don’t want to deal with. Your attorney can contact the local courthouse and review public records to ensure you won’t be inheriting any legal difficulties along with the house.

2. “Fixer-Uppers”

Some properties marketed as “fixer-uppers” may only need minor cosmetic improvements, while others could have serious structural problems that could cost thousands to fix. If you’re buying real estate, always get a thorough property inspection and factor the cost of repairs into your offer.

3. Sudden Price Drops

If a house has sat on the market for a while, the sellers might lower the price to attract more buyers. However, a dramatic drop in the asking price or several decreases over a few months could mean the house has a major issue you may not want to deal with.

4. Foreclosure

Buying real estate in foreclosure can be a good way to land a discount, but it also comes with legal challenges and financial risk. In some cases, there might be liens on the title, or the previous owners may not have properly maintained the house. If the lender doesn't allow inspections, it may be best to keep looking.

For more than 43 years, Chattanooga Title has helped homeowners throughout Hamilton County, TN, navigate the closing process. If you’re buying real estate, you can rely on their team to research the history of the property and conduct thorough title searches before closing. Visit their website for an overview of their services, or call (423) 756-3057 to discuss your needs with a member of the team today.