Buzz
Searching for a home can feel like a daunting task. In 2023 alone, over four million homes were sold, and the number of available properties has surged in recent years. From obtaining pre-approval for a mortgage to actually finalizing a purchase, the path to homeownership can be lengthy and exhausting, with some prospective buyers touring dozens of homes over several years before sealing the deal.
One factor could be the distorted expectations influenced by real estate reality TV shows. However, sometimes a listing may paint an idealized picture of a home, but when you attend an open house, what you encounter are clear warning signs. The reality is that real estate listings are essentially marketing tools designed to catch your interest, often stretching the truth or even being misleading. Being able to quickly recognize these exaggerated or fabricated listings can save you time and frustration. Here are a few common red flags that indicate a listing may be far from the truth.
Particular wording
When you come across a real estate listing, it’s easy to get lost in the tempting descriptions like 'charming' or 'cozy' and overlook any signs of jargon. However, there are clear warning signs that indicate you’re looking at what’s known as a 'lying listing'—a term used in real estate to describe a listing that bears little resemblance to the actual property.
Acronyms. At times, real estate agents might include legal disclaimers in a listing, often using acronyms that non-industry folks won’t notice. Common ones include BATVAI (buyer's agent to verify all information) and IDRBNG (information deemed reliable but not guaranteed). If there’s any dispute about the accuracy of the listing, these acronyms serve as proof that the agent gave a heads-up about the potential discrepancies.
Misleading wording. Real estate listings can conceal undesirable features of a property behind cleverly crafted language. Terms like 'cozy' (meaning: small), 'well-maintained' (meaning: old and outdated), or 'custom' (meaning: you’ll need to undo the owner’s odd design choices) should raise red flags. An honest agent would simply mention that the house is small or needs renovations.
Tax assumptions
You should never trust the property tax information in a real estate listing. It’s frequently outdated and can be manipulated to make monthly payments appear lower than they actually are. Sometimes this happens due to honest mistakes, but if the current owner benefits from a tax exemption (like if they’re senior citizens, for example), the listing agent might use the lower tax rate to mislead you. When you purchase the property, your taxes could end up being significantly higher than expected.
If a listing emphasizes exceptionally low taxes, treat it as a red flag. Always verify property tax details with county records, which are publicly available. While you're at it, check when the property was last appraised by the tax office—if it was some time ago, it might be due for a substantial tax increase, a detail the listing may have conveniently overlooked.
Strange photos
One sign that a real estate listing might not reflect reality can often be found in the photos. While photos can never truly capture the full essence of being inside a space, they should at least give a reasonably truthful depiction of the property. Here are some ways to spot misleading photos:
Distorted perspectives. If every photo is either warped by a 'fisheye' lens, making the space look oddly distorted, or taken from extreme angles that resemble abstract art, it’s likely that they’re trying to make a small area appear larger or discreetly hide something, like unsightly power lines or a damaged floor.
Over-edited. In 2024, we’re used to seeing photo filters, virtual staging, and other editing techniques. But if the images appear cartoonish with no clear mention of virtual staging, you’re likely seeing an overly polished version of the property that doesn’t show it as it really is.
Poor quality. Do the photos appear blurry or as if they were taken with a low-quality camera? While this could be due to carelessness, it may also be a way to obscure unattractive features of the property. Regardless of the reason, if the images are unclear or pixelated, approach with caution.
Unreliable square footage
Lastly, take a close look at the square footage listed in a real estate listing. While mistakes can happen in defining 'living space' or dealing with unapproved additions, sometimes real estate agents may intentionally inflate the square footage to make the property look more appealing or justify a higher price.
Identifying inflated square footage from a listing can be tricky, but there are several signs you can watch for:
Out of place. Compare the listed property with nearby homes, particularly if they’re rowhouses or part of a similar development. If the house in question has a significantly different square footage than its neighbors, question how they managed to fit that extra space in.
Small rooms. Do a quick mental calculation: The typical bedroom is around 132 square feet, kitchens usually range from 150 to 175 square feet, living rooms tend to be about 216 square feet, and bathrooms can vary from 40 to over 200 square feet (especially in lavish en suites). Add up the sizes of the rooms in the listing and see if the total aligns with the advertised square footage. Your estimate won’t be perfect, but it should make sense—if it doesn’t, consider where the extra square footage is hiding. Better yet, ask the listing agent.
