Types of Homes to Steer Clear Of

Homes with Foundation Problems

Dallas's unique black clay soil is notorious for causing foundation issues. This soil expands when wet and shrinks when dry, putting immense pressure on foundations.

• Warning Signs: Look for cracks near doors and windows, and use a simple trick: place a tennis ball on the floor to see if it rolls. Outside, inspect for staircase cracks in the foundation.
• The Cost: Foundation repairs are not cheap, often costing tens of thousands of dollars, and home warranties typically don't cover them after the first 10 years.
• Prevention: Regularly watering around your foundation during dry summer months can help maintain consistent soil moisture.

Condemned Homes and Foreclosures

These properties often come with an attractive low price tag, but they can be a mystery box with hidden problems.

• As-Is Sales: Foreclosures in Texas are sold "as-is" with no seller disclosures, meaning you buy all existing issues.
• Hidden Damage: They often sit empty and unmonitored, leading to potential burst pipes, roof leaks, pest infestations, and vandalism.
• Closing Challenges: Closing with banks on foreclosures can be a lengthy and frustrating process, sometimes taking 90 days or more.
• Loan Limitations: Certain loan types may not be applicable for these properties, and you could inherit tenants who have up to 90 days to vacate.

Mobile Homes

While seemingly affordable, mobile homes in Dallas pose significant safety concerns, primarily due to the region's tornado activity.

• Tornado Risk: Dallas is at the tip of Tornado Alley, and mobile homes are significantly more vulnerable during severe weather. People in mobile homes are 15-20 times more likely to be injured in a tornado compared to those in traditional houses.
• Insurance Woes: Insurance for manufactured homes is more expensive and offers less comprehensive coverage than standard homeowners insurance.
• Location Restrictions: Many Dallas neighborhoods have restrictions on where mobile homes can be placed, often limiting them to designated mobile home parks.

Homes in High-Risk Locations

The location of your home can greatly impact your living experience and long-term costs.

• Noise Pollution: Living near major highways (like 635 or 35), railroad tracks, or under flight paths (e.g., near DFW or Love Field airports) can result in constant, disruptive noise. Always visit a potential home at different times of the day to assess noise levels.
• Weather Hazards: Dallas experiences hail storms regularly, making a garage almost a necessity for car protection. Hail damage deductibles can be as high as 1-2% of your home's value.
• Flood Zones: While not coastal, Dallas can experience flash flooding. Always check if a property is in a flood zone, as it will require additional flood insurance.

Homes with Shared Walls and Roofs (Without Proper Safeguards)

Properties like half-duplexes or certain townhomes and condos can create unique challenges.

• Shared Responsibility: If you share a wall and roof with another owner in a non-HOA area, you could face problems if your neighbor is unwilling or unable to fix their portion of shared damage (e.g., a roof leak).
• HOA Special Assessments: For condos and townhomes with HOAs, a major repair (like roof replacement after a hail storm) can lead to special assessments of $10,000 or more with little warning, on top of regular fees. Always examine the HOA's financial reserves.

Overpriced Flipped Homes

Many homes in Dallas are bought by investment companies, given cosmetic updates, and then listed significantly above market value.

• Cosmetic vs. Core Condition: Don't let new countertops or fresh paint distract you from the true condition of major systems like the foundation, roof, plumbing, and HVAC.
• Lack of Permits: A significant issue with flipped properties is work done without proper permits. This can lead to problems when selling, filing insurance claims, or if the work wasn't done safely or correctly. Always request to see permits for renovations.

Conclusion

By understanding these common pitfalls, you're already one step ahead of many buyers in the Dallas real estate market. Knowing what to avoid allows you to make a more informed and strategic purchase, ensuring you find a home that's not only a joy to live in but also a sound investment.