Red flags could signal a bad real estate deal

When it comes to real estate, there are a few red flags you need to watch out for. Not getting good responses in a fair amount of time from a buyer or seller, being surprised by calls with high emotions or note that the other party is trying to control the transaction, it's time to step back and review what you know.

It's a frustrating thing to deal with high emotions during a sale or purchase of a property. Of course, you have a right to speak out about factors you don't think are good about the property, and you should speak up if there's something unusual in the transaction. However, take the emotion out of it and remember that this is a business transaction. If someone calls you and is too emotional, wait and call back later when he or she has had time to calm down.

Another thing to watch out for is a sudden change in financing. It's pretty common to see someone change from taking out a mortgage to financing a purchase in cash. Perhaps they received an inheritance or came up with the money on their own. The reverse is not as positive and could signal that there is a problem with money flow for this transaction. If you're selling, make sure you get a preapproval from the buyer at this point, so you know he or she has the funds to make a purchase.

Real-estate transactions are all unique, and some are complicated. Our site has more on what to expect from your transaction.