What are the biggest problems with online home listings?
When you’re about to purchase a product online, you often think: “That’s an amazingly low price for something that looks really nice.”
So you decide to search for a review of the company before handing over your credit card information. And you find out that you almost paid for a ripoff.
Good thing you trusted your intuition.
That’s the hazard associated with e-commerce. It’s why the internet has forced us to become savvy shoppers to protect ourselves from scammers. And as more of our economic life migrates online, that’s become true when buying big-ticket items as well.
Home searching savvy
When it comes to buying a home, almost everyone starts their search online, looking at listings on real estate sites.
Here are some problems to be aware of in understanding home listings and making the most of them. They’ll help you see through deceptive or distracting practices, and avoid mistakes when looking at homes online.
One of the best ways to start your search for a home is to get pre-approved with PowerBid Approval. It will give you a better idea of what you can afford and make sure you’re ready to move when you click onto the home that you want.
Misleading terms
Home listings often use language designed to make the property sound more appealing, but some terms are used to hide issues. Be mindful of vague or overly positive descriptions, and take them as cues to dig deeper into the home’s real condition.
Here’s are some common misleading terms and what they might actually mean.
“cozy”: tiny
“fixer-upper”: renovations-needed
“up-and-coming neighborhood”: there’s nothing nearby
“comfy”: worn out
“partial view”: of some landmark: you may pull a muscle trying to see it
“generous-size rooms”: normal-size rooms
“one-of-a-kind design”: there’s a reason no one else has this design
“bring your ideas”: it’s a gut rehab
“must be seen to be believed”: our photos don’t look that good, probably for a good reason
“vintage”: needs updating
“great bones”: needs a renovation
“location, location, location”: needs a better house
Low asking price
Usually when we search online listings, we search partly by asking price. A low asking price might catch your eye, but it can be a red flag.
While some properties are genuinely priced to sell quickly, others may be listed low due to significant issues, such as structural problems or the need for extensive renovations. Make sure to ask questions and do your homework to understand why the price is lower than similar homes in the area.
Many price changes
Most online listings have a section called “Price history” or “Listing history.”
This section lists each time a home has been put up for sale, had a price change, or was sold or taken off the market.
Checking the price history is key becase you can see how the market has responded to the home based on its asking price.
If you notice a home listing with frequent price changes, it’s a signal that something may be off. A property that’s been reduced multiple times might indicate a seller's desperation or a home that’s struggling to find buyers.
This could be due to problems with the house that aren’t obvious in the listing.
On the other hand, this also could reflect a home that’s been overpriced when it was first listed, and it could end up being a good thing for you.
When a home starts dropping in price, some buyers may think that there are fundamental issues with the home and will ignore or avoid it. But if the owner’s pricing strategy was misguided, you may be able to take advantage of the negative perception of the home and find a deal.
Suspicious or missing photos
Photos are one of the most important parts of a listing, so if they’re missing or seem suspiciously limited, it’s worth being cautious. A lack of images for key areas like bathrooms or the kitchen might mean these spaces are in poor condition. If the listing says four bedrooms, but you only see photos for two of them, that should raise your suspicions.
Manipulated or AI-generated photos
With advances in technology, some listings may include digitally manipulated or even AI-generated images to enhance a home’s appearance.
It’s not uncommon to see images that have been “digitally staged” with virtual furniture placed in an empty room to help you envision the possibilities. This by itself is not a red flag and these images should note that they have been manipulated, which is the best practice for this type of photo.
But you need to watch for photos that look too perfect or have strange elements such as unrealistic lighting or overly symmetrical spaces. If something seems off, these images may not be an accurate representation of the home, and you should hold off on scheduling a showing.
Home removed then put back on the market
In the “Price history” section, you can see each time a home has been listed, went under pending contract, was removed or sold. Seeing a home back on the market after it was under contract can be a major red flag. Often, this signals that something went wrong during the inspection process, such as pest infestation, structural issues, or problems with plumbing or electrical systems. These are usually costly fixes that may have caused the previous buyer to walk away and may warn you to stay away, too.
House has clearly been flipped
Flipped houses aren’t necessarily a bad thing and can be great if the work is done well. However, sometimes quick renovations perform cosmetic fixes that hide deeper issues.
If a home looks like it's been newly updated, be cautious. The listing should include information about when the home was last purchased and when it was put up for sale, so check those dates. If it is a flip, the time between the last sale and when the home was listed again could be a year or less.
If you suspect it could be a flip, you’re going to want to take a close look at the home in person. Inspect the quality of the finishes and ask about the renovation history to avoid costly surprises down the line.
Also, find out information about whoever performed the renovations. Do they have a good reputation, or have they left a string of angry homeowners in their wake?
The listing is too good to be true
If a home listing feels too good to be true, it often is.
A property that claims to have everything, such as perfect location, great price and high-end features, might be masking potential downsides. Research the neighborhood, double-check comparable prices and look beyond the surface to make sure there aren’t hidden issues that could turn your dream home into a nightmare.
See the home in person
Real estate is not e-commerce. This is too big a purchase to be done online, even if the latest tools make the process that easy. Visit the home in person and make the decision based on the best information you can get: your own personal experience.
Identifying these problems isn’t designed to replace your perspective.
It will help you pick up on things to look at when you visit the property in person or save you the trouble of visiting a home that looks good online, only to let you down once you see it with your own eyes.
As always, the best way to approach buying a home is to surround yourself with experts who know the homes in the areas you’re looking and to work with a trusted lender.
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