7 Red Flags For Homebuyers To Watch Out For

House hunting in Calgary can be exciting, but watching for warning signs is just as important as ticking off boxes on your homebuying wishlist. From prices that seem too good to be true to strange smells that hit you when you walk in, these red flags can save you from making a costly mistake.

Homebuying Warning Signs

• Unusually low prices often hide expensive problems
• Pest evidence means damage you can't always see
• Water stains mean potential mould and structural damage
• Strange smells point to water damage, mould, or gas leaks
• Any sign of foundation issues means danger and expensive repairs
• Poor maintenance outside usually means neglect inside, too
• Locked rooms during tours might hide serious problems

That Price Seems Way Too Low

When you find a house priced much lower than similar homes nearby, stop and ask why. There's almost always a reason.

If you find a detached, 2,000-square-foot home priced at $500,000 in the Altadore neighbourhood, where average prices are above $1 million, warning bells should start ringing.

A bargain price often hides big problems. The seller might know about serious issues they hope you won't notice. Or the neighbourhood might be changing for the worse.

Watch for lots of "For Sale" signs on the same street. This could mean neighbours are trying to escape problems like a lack of nearby jobs or significant commercial development.

That cheap house might cost you much more down the road. Low property values can trap you in a home you can't sell later without losing money.

Look For Signs of Unwanted Pests

Pest infestations can cause major damage to a home before you even notice them. During your tour, keep an eye out for these tell-tale signs:

• Pencil-sized mud tubes running up foundation walls or in basements mean termites. These tiny insects can eat your house from the inside out.
• Small piles of what looks like sawdust near baseboards or wood trim? That's often carpenter ants or beetles boring through the wood.
• Tiny droppings or gnaw marks point to mice or rats, especially in kitchens or near food storage areas. These pests multiply quickly and can damage wiring, insulation, and more.

If you spot any of these warning signs, get a pest control expert to check it out before you buy. Pest remediation can cost hundreds or thousands, depending on the level of infestation, but untreated problems could cost you tens of thousands (or more).

Water Damage Never Gets Better On Its Own

Water stains on ceilings, walls, or floors are major warning signs. These brown or yellow marks mean water has gotten where it shouldn't be.

Check for:

• Bubbling or peeling paint and wallpaper
• Warped or soft flooring, especially near bathrooms and kitchens
• Watermarks on ceilings (often in corners or near chimneys)
• Stains that look "fixed" with fresh paint

Multiple water stains throughout the house mean ongoing problems, not one-time accidents. The source could be leaky pipes, bad gutters, or roof issues. Cleaning gutters isn’t complicated or costly, but failing to keep up with it can lead to massive and expensive problems.

Always get water damage checked by a professional. What looks like a simple stain could hide mould, rot, or electrical problems that cost a lot of money to fix.

That Smell Isn't Normal

Trust your nose when house hunting. Strange smells almost always point to problems.

A musty, damp smell is a common sign of mould in the home. This is especially true in basements, bathrooms, or near windows. Mould can cause health problems and points to water issues the seller hasn't fixed.

If you notice a sewer smell, the home likely has plumbing problems. Bad pipes or issues with the septic system can cost thousands, so promptly addressing plumbing issues is vital.

The scariest smell is gas. Tell the agent immediately if you detect even a hint of gas odour. This could mean dangerous leaks that need emergency attention.

Don't let sellers convince you that smells are temporary or normal. Bad odours almost always signal bigger problems hiding behind walls or under floors.

Foundation Issues Mean Big Trouble

Foundation problems are among the most expensive to fix. Look for these warning signs:

Cracks in exterior walls, especially ones wider than a pencil eraser, signal foundation issues. Check the basement or crawl space for similar cracks.

Doors and windows that stick or don't close properly often indicate that the house frame has shifted due to foundation movement.

Sloping or uneven floors tell you something's not right underneath. Walk through the house with a marble—if it rolls independently, the floor isn't level.

Sagging ceilings or rooflines are serious red flags that could mean structural failure.

Don't ignore these signs. Foundation repairs can cost $10,000 or more, and many home insurance policies and home warranties won't cover them.

The House Looks Neglected

A house that looks run-down on the outside often has hidden problems inside.

Peeling paint, missing roof shingles, and overgrown yards tell you the owner hasn't kept up with basic maintenance. This usually means they've ignored less visible problems, too.

Check for:

• Broken fixtures and appliances
• Outdated electrical panels
• Leaky faucets and toilets
• Dirty air filters and HVAC systems

These visible problems might seem small, but they signal that bigger systems like plumbing, electrical, and heating have probably also been neglected.

The impact of improving curb appeal on home selling is well-documented, so buyers should, at the very least, question why curb appeal hasn’t been addressed. If the seller hasn't fixed easy surface stuff, imagine what they haven't fixed behind the walls!

Why Is That Room Locked?

Be suspicious if certain rooms or areas are "off-limits" during your home tour.

Sellers might lock doors to hide:

• Major damage they don't want to fix
• Unpermitted renovations that don't meet building codes
• Mould or water problems
• Outdated or dangerous electrical work

Never agree to buy a house without seeing every room. If a seller refuses access, assume they're hiding something serious.

Ask directly why the room is locked. If they make excuses or say it will be available "later," take that as a big warning sign.

Trust Your Instincts When House Hunting

When buying a home, pay attention to warning signs that could save you from making an expensive mistake. From cheap homes in Calgary’s richest neighbourhoods to evidence of pests and strange smells, there’s much to watch out for. 

Take water damage, structural problems, and poor maintenance seriously. And never agree to skip seeing any part of the house. These red flags might mean walking away from a house you otherwise like, but they could also save you from buying a money pit that drains your savings and causes endless stress.