Short sale homes are sold for less than what’s owed on the mortgage. That might sound like a great deal, especially in a hot market. But these homes often come with a long list of problems the previous owner couldn’t afford to fix.
As experienced home inspectors, we’ve seen firsthand what properties in the Houston area can hide. Below are 10 of the most common issues and why they matter if you’re thinking about buying a short sale home.
1. General Neglect and Missed Maintenance
Many homeowners stop investing in repairs once they fall behind on mortgage payments. That’s why short sale homes often show signs of long-term neglect.
We regularly find:
- Leaking sinks or bathtubs
- Broken light fixtures
- Warped doors and cracked tiles
- Outdated or broken appliances
Even small repairs add up. According to HomeAdvisor, the average cost to catch up on basic deferred maintenance is between $2,000 and $8,000, depending on the home’s condition. And that’s before any major systems are addressed.
2. Water Damage and Mold
Water intrusion is one of the most expensive problems in a home. And in short sale properties, it often goes untreated.
Watch for:
- Dark spots or bubbling paint on ceilings or walls
- Warped or soft flooring
- Musty odors
Left unchecked, water damage can lead to mold growth. The CDC links indoor mold to breathing issues, especially in children and people with asthma.
Mold remediation typically costs between $1,500 and $6,000, but hidden infestations can push that higher.
3. Electrical Hazards
Electrical systems in older or neglected homes are often unsafe. We’ve found homes with exposed wiring, overloaded panels, and outlets that don’t meet current safety standards.
Common issues include:
- Aluminum wiring
- Loose or scorched outlets
- Lack of GFCI protection in bathrooms and kitchens
Faulty wiring is one of the top causes of house fires, according to the National Fire Protection Association.
Updating outdated electrical components can cost several thousand dollars, depending on the scope.
4. Plumbing Problems
Plumbing issues often start small but grow expensive when ignored. In short sale homes, problems might include:
- Low water pressure
- Rust-colored water
- Backed-up drains
- Old galvanized steel or polybutylene pipes
Replacing plumbing throughout a home can cost thousands, depending on materials and layout. And that’s not counting any hidden water damage that may come with it.
5. Foundation Damage
Houston’s soil is known to shift with moisture levels. This natural movement puts stress on a home’s foundation.
Short sale homes often show signs of foundation trouble because they haven’t been maintained properly.
Red flags include:
- Cracks in brick or drywall
- Uneven floors
- Doors that don’t latch properly
- Gaps between walls and ceilings
Foundation repair costs vary widely, but HomeAdvisor reports that major repairs can exceed $15,000.
6. Pests and Termites
A vacant or poorly maintained home can quickly attract pests. We’ve seen everything from mice in attic insulation to termite damage in support beams.
What we find most often:
- Active termite tunnels
- Rodent droppings
- Roach infestations, especially near plumbing
Termite damage costs U.S. homeowners more than $5 billion each year, and most insurance policies don’t cover it.
7. Failing HVAC Systems
In Houston, working air conditioning isn’t optional. But HVAC systems in short sale homes are often dirty, old, or broken.
Issues we often find:
- Systems that short-cycle or won’t start
- Moldy ductwork
- Rusted drain pans
- Poor airflow due to clogged filters
Cleaning or replacing ductwork is another expense many buyers forget to factor in.
8. Roof Damage
Roofs are expensive to fix, so they’re often ignored in financially strained situations. In short sale homes, that might look like:
- Missing or curling shingles
- Sagging rooflines
- Water stains in the attic
- Patch jobs instead of full repairs
Roof replacements can cost $7,000 to $15,000 or more. Skipping a roof inspection could mean missing major leaks.
9. Unpermitted Work
Some homeowners try to save money by doing major work without permits. That might include finishing a garage, moving plumbing, or adding a bathroom.
Unpermitted work may not meet code, could affect safety, and can delay resale. In some cases, you may be required to undo or re-do the work at your own expense.
Always verify permits with your local building department if anything looks off.
10. Delays and Paperwork Problems
Buying a short sale home isn’t always fast. Approval has to come from the lender, not just the seller. It’s common for these deals to take 3 to 6 months to close.
In some cases, deals fall through entirely if lien holders won’t approve the sale terms.
Other Maintenance Tips to Keep in Mind
If you move forward with a short sale home, plan to:
- Replace all HVAC filters
- Test smoke and carbon monoxide detectors
- Have the sewer line scoped
- Drain and flush the water heater
- Check outlets and circuit breakers for function and safety
These are easy things to overlook but can help prevent future headaches.
When to Call a Professional
A short sale home might be worth the savings, but only if you know what you’re buying. The only way to get a full picture is with a professional home inspection.
At All Coast Home Inspections, we specialize in finding the issues others miss. Whether it’s roof damage, foundation movement, or a moldy A/C system, we’ll give you the facts so you can make a smart decision.
Conclusion
Short sale homes come with risks. The lower price may look good upfront, but hidden problems can make the deal more expensive in the long run. Don’t skip an inspection. Know what you’re walking into, and buy with your eyes open.
Buying or selling around Houston? Schedule your inspection with All Coast today. We’ll help you move forward with confidence.
