3 Home Upgrade Red Flags Buyers Should Never Ignore

When you walk through a home that is for sale, upgrades feel like a good thing. A finished basement, fresh paint, a brand new detached garage. It feels like more house for the money.

Some of the upgrades that make a place feel like a deal are the exact ones that should make you stop and ask questions. Three in particular: fresh paint in a room that should not need it, work that was never permitted or never done by a licensed pro, and an upgrade that came with somebody else unpaid bill attached to the property.

In the video below, North Carolina attorney Tiffany Webber walks through all three, including how an unpaid contractor you have never met can end up with a claim against the house you are buying.

Watch the Full Video

Red Flag 1: Fresh Paint in the Wrong Room

Fresh paint anywhere in a house usually feels like a plus. Somebody cared, somebody kept it up. Pay attention to where the fresh paint is.

A freshly painted living room is normal. A freshly painted basement, crawl space, or any area prone to moisture is a different story. Sometimes a new coat of paint in a damp part of the house is not about making it look nice. It is there to cover something up, water damage or even mold, right before the home hits the market.

We see this, and the paint does its job. The basement looks clean and bright, and the staining and the mold are sitting right behind it.

So if you notice fresh paint in a basement, a crawl space, or anywhere moisture likes to collect, do not check it off as a positive. Let it be the thing that triggers a closer look. Bring somebody in to check for moisture and mold before you close, not after.

Red Flag 2: The Upgrade That Was Never Permitted

Now picture the upgrade that sells the house. An added room, a garage converted into a bonus space, a basement somebody finished off. Exactly the extra square footage you were hoping for.

Here is the question most buyers never think to ask. Was that work ever permitted?

A permit is the local government signing off that the work was done legally and inspected to make sure it meets code. When a seller adds a room or finishes a basement, that work is supposed to be permitted. If they skipped it, the work may have been done illegally, and if you close without resolving it, it stops being the seller problem and becomes yours.

Same story with do it yourself upgrades, especially electrical, plumbing, and heating and air. Work done by somebody who is not licensed might not meet code, and that creates the kind of issues that show up long after closing. Whoever owns the work owns the consequences of it, and the day you close, that is you.

So check the permit history before you close. You can pull the permit records on a property and see what was permitted and what was not. Then you get to decide. Maybe you look at it and you are not that worried and you will take the risk. Maybe you decide the risk is too big. Either way you found out while you can still terminate the contract.

Red Flag 3: The Upgrade That Comes With Somebody Else Bill

Sometimes the problem is not the work at all. The work can be beautiful and done perfectly. The problem is that the upgrade came with a bill attached, and the bill can follow the property to you.

Here in North Carolina, when a contractor does work on a property they are supposed to file on a public lien agent system, and anyone can look at it. If a contractor did work and did not get paid, they can put a lien on the property. A lien is a legal claim for money that attaches to the house itself, not just to the person who hired them. So a contractor you have never met, hired by a seller you barely know, can have a claim against the house you are about to buy.

That sounds unfair, and we hear that at closings. It is also exactly the kind of thing we are looking for as part of clearing title. Anyone who has filed on that system has to either sign a lien waiver or produce an invoice showing what they are owed, so they can be paid and sign the waiver, so you can take clear title. Clear title means you own it free of somebody else claim.

Then there is the second version of the same idea, and this one comes from the rules rather than the workers. Before you ever go under contract, read the restrictions on the property, the rules that say what you are actually allowed to do with it. People skip this all the time.

Say a new garage has been built, but it does not match the house, and the restrictions say any structure has to match the house. That is not a nice upgrade. That is a fresh violation. And a violation like that can mean there are already fines on the property, or fines coming. After you close those land on the owner, which is now you.

So do the two things almost nobody does. Check the lien agent filings to see if anyone has filed for unpaid work, and read the restrictions to make sure the upgrade did not break a rule.

Watch the full video for the full breakdown. If the restrictions themselves are the problem, we covered what to do about that in how to remove property restrictions in North Carolina.

Common Questions

Can a contractor put a lien on a house I just bought?

If the work was done before you bought and the contractor was not paid, a claim can attach to the property. That is why the lien agent filings get checked and waivers get collected as part of clearing title at closing.

How do I check the permit history on a North Carolina property?

Through the county or municipal permitting office. Many make records searchable online, and the records show what was permitted and inspected versus what was not.

What happens if I buy a house with unpermitted work?

It becomes your responsibility. Depending on the county you may be required to bring the work up to code or remove it, and it can complicate your own sale later.

Is fresh paint in a basement a red flag?

Not by itself, but it is worth a closer look. Paint in a moisture prone area can be covering water staining or mold, so it is a reason to get someone in to inspect before closing.

Can an HOA fine me for a violation the previous owner created?

Often yes, because the violation attaches to the property. Existing fines and the cost of curing the violation typically land on whoever owns it, which is why the restrictions are worth reading before you make an offer.

Buying Around Lake Norman?

At Thomas & Webber, the title search, the lien agent filings, and the recorded restrictions all get reviewed before you close, so the upgrade that sold you on the house does not turn into the most expensive thing about it.

Our offices in Mooresville, Cornelius, Denver, and Kannapolis serve buyers and sellers throughout the Lake Norman area, including Davidson, Huntersville, Sherrills Ford, Troutman, and Statesville.

Email your contract to close@thomasandwebber.com or call us at (704) 663-1600 to schedule your closing with us.