Four bold red flags you should never ignore when buying a house

So you're tired of looking for a home to buy and you think you might have found "the one". But here's the thing, writes Ed McKnight, potential properties are a little like first dates, you're wise not to ignore the red flags.

Whether you’re a first-home buyer, next-home buyer, or investor, buying property is a big commitment. But sometimes what looks like “the one” can come with hidden baggage.

From sneaky staging to dodgy building materials, here are five red flags every buyer should watch out for before making an offer.

You might spot a sleek looking fridge or a high-end wine cooler during the open home. If the real estate agent casually says, “Oh yeah, I think that’s staying”... don’t believe them. Check the contract.

If it’s not in the sale and purchase agreement, it’s not staying.

Take it from me. I bought a place where the agent showed off the in-built sound system, casually saying, “I think that amplifier is staying.”

It wasn't. A fact I missed in the contract. When I moved in, it was gone. Replacing it will cost a small fortune.

Lesson: If the agent says something like an appliance is included, get it in writing. The chattels list in your contract matters – not what’s on display during the open home.

Sellers can sometimes get a little too clever. A friend of mine bought a place where the kitchen bench looked pristine.

There was a stylish chopping board on the bench during the open home. There was a lovely vase of fresh flowers sitting on top. Seemed like a nice touch.

But when he moved in, the flowers were gone. He went to move the chopping board. To his surprise there was an enormous hole underneath, right in the middle of the bench.

Is this illegal? Technically, the sellers must disclose any issues to their real estate agent. But if the agent also doesn’t know of an issue (because it was cleverly hidden), it becomes a grey area.

Sure, you can go back to the seller and ask for compensation, but it’s easier to spot these issues up front, rather than trying to get money from them later.The best thing to do is catch these things, before you pay for the house.

Lesson: Look under things. Move the furniture, check behind curtains, lift rugs. Ask questions. Take nothing at face value.

Every Kiwi hears the term “leaky home” and shudders with horror. Typically when buyers imagine a leaky home they think of one cladded in plaster.

But to be clear, it’s not the plaster itself that’s the issue. It’s the monolithic cladding.

Back in the 1990s and early 2000s, properties were built where the plaster exterior touched the interior framing. When water got in, it rotted the untreated wooden structure of the house.

Today, properties are built with a cavity. That means there’s a gap between the exterior cladding and the structure of the house.

So if the property is plaster over brick and has a cavity, it’s less of a worry. But if you’re eyeing up a plaster home without a cavity, that’s a potential leaker in waiting.

Lesson: In almost all cases of seriously considering a home purchase, it's well worth paying the few hundred dollars it costs to get a building inspector to look it over. And If you’re considering a plaster home, ask them specifically about monolithic cladding and cavity systems. Don’t just rely on looks, get technical.

Open homes are often held on quiet Sunday afternoons. Typically the neighbourhood seems peaceful and without much traffic.

But if you buy a house, you won’t just be there at 2 pm on a Sunday. You’ll live there for most of the day. So it’s important to drive past the property at different days of the week and different times of the day.

I know a woman who bought a property after attending a well-timed open home. After moving in, she discovered her new neighbours up the road were a rowdy bunch of motorcycle enthusiasts. They would rev their bikes, and disturb the neighbourhood at all hours of the night.

She felt misled by the open home and the agent. But the reality is, the agent may not have even known.

Lesson: If you’re serious about buying, do multiple drive-bys – at night, early morning, and during the week. Scope out what the area is really like. Your home is a long-term commitment. Make sure you know what you’re committing to – beyond the 15-minute viewing. Also be aware of music playing during an open home, it's often there to subtly drown out the noise of a nearby motorway or busy road.

Buying property is exciting – but don’t let the excitement blind you to potential red flags.

Take your time. Ask the awkward questions. Look under the rugs, behind the flowers, and don’t be afraid to do a late-night drive-by.

A little extra scrutiny now could save you thousands (and a whole lot of stress) down the track.

Buying smart is about being curious. You can’t just see if a property looks good, you’ve got to find out.

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Ed McKnight is an Auckland-based economist and property investment advisor.

This information is general in nature and should not be taken as personalised financial advice.