It is likely to raise some red flags if a property is up for sale at a considerably cheaper price than those it compares to in the same area. If the price of a property leaves you questioning yourself, then trust your gut and do some research. 

This article will explore six hidden reasons why a home might be listed for well below market value.

1. Structural Issues

Sellers may price a property with structural issues considerably lower with the aim to attract buyers willing to take on major repairs. These issues may include foundation cracks, roofing problems, or outdated plumbing and electrics.

2. Location Challenges

Properties near a busy road or in a high-crime neighbourhood are often sold for cheaper, as they are less desirable areas. However, some location challenges you may not notice without doing a bit of research include industrial zones, flood-prone areas, or hurricane alleys. 

3. Pest Infestations and Damages

Pest infestations or damages aren’t always visible during initial viewings, but they can be costly to fix once you’ve bought the property. If a property has a lower price tag, it may reflect these hidden pest problems.

4. Legal Complications

Homes with unresolved legal issues, such as boundary disputes, may be put on the market for a reduced price. This is usually the seller’s way of compensating for these complications, but they may cost you in the future. 

5. Negative History

Regardless of the condition or location of a property, if it has a negative history, they become hard to sell. A home where someone died or was killed can become psychologically stigmatised and this impacts how much buyers are willing to pay.

For example, in 2011, skeletal remains of a former resident were discovered in a Surry Hills terrace home eight years after her death. Following this, the property lingered on the market and was tough to sell, even during a slowdown. Now, real estate agents in New South Wales must disclose violent deaths or murders as material facts. 

6. Unfinished or Complicated Renovations

Sometimes a homeowner starts a property renovation and then for whatever reasons, doesn’t finish the project. These properties are often listed cheaply to attract buyers ready to take over the project and deal with permits. 

Final Thoughts

Unfortunately, some things in life are too good to be true. An affordably priced can be appealing, especially in today’s housing market, but always consult with the real estate agent if the price is raising some red flags. A bargain might just come with hidden costs.