Should You Still Make an Offer on a House with Red Flags?

Let’s say you found a home that checks most of your boxes. But then… a few things feel off. Maybe there’s a strong smell. Maybe the roof looks rough. Or maybe something just feels wrong.

Now you’re wondering: should I still make an offer on a house like this?

That’s a great question—and the short answer is maybe. You need to know which red flags are deal-breakers and which ones can be fixed. Because sometimes a great home just needs a little love… and other times, it's best to walk away.

This guide will help you understand what to do, what to ask, and when to move forward—or move on.

Red Flags in Real Estate: What You Need to Know

Before we dig into whether you should make an offer on a house with red flags, let’s define what a “red flag” really is in the real estate world.

A red flag is something that could point to a bigger problem. It’s not always a reason to run away, but it’s definitely something that needs attention.

Some common red flags include:

• Foundation cracks

• Roof damage or missing shingles

• Old or damaged electrical wiring

• Strong odors (like mold or pet urine)

• Water stains or signs of past flooding

• Sloped floors or bouncy steps

• Signs of pests like termites or mice

If you're searching Litchfield houses for sale or looking through Southern NH houses for sale, you’re bound to run into at least one of these at some point.

But the question is: what do you do when you spot them?

Step One: Don’t Panic—Get the Facts

Seeing something sketchy during a showing doesn’t mean the home is a no-go. Many issues can be fixed. Some may even give you more room to negotiate.

The key is getting the full picture. That’s why a home inspection is so important.

What to Do First:

• Talk to your REALTOR®. Let them know what concerns you. A good agent will guide you from the start.

• Schedule a home inspection. A licensed inspector can help you spot major (and minor) issues before you commit.

Your goal isn’t to avoid homes with any flaws. It’s to know what you’re dealing with and what it will cost to fix.

When It’s Okay to Still Make an Offer on a House

Let’s say the home has a few issues. But nothing that seems too major.

Here are some red flags that might be worth working through:

1. Cosmetic Problems

Old paint, dated cabinets, dirty carpet—these are easy fixes. Don’t let ugly scare you off.

2. Minor Water Stains

If the cause has been fixed (like an old leak), and there’s no mold, it may not be a big deal.

3. Old Appliances

This could be a chance to update the home your way—and even get a price cut from the seller.

4. Non-Structural Cracks

Hairline cracks in the drywall are normal. These usually aren’t signs of serious damage.

If you still love the location and the layout, and the price is right—yes, you can still make an offer on a house like this. Just go in with eyes wide open.

Red Flags That Should Make You Think Twice

Some issues can cost you big in the long run. Here are red flags that may mean it’s time to pump the brakes:

1. Foundation Problems

Big cracks, sagging floors, or doors that won’t close? These could mean foundation trouble. That’s expensive to fix—and sometimes not fixable.

2. Mold or Mildew Smell

Mold can hide in walls or basements. It can cause health problems and be costly to remove.

3. Flooding History

Water damage is one thing. Regular flooding is another. Be sure to ask about flood zones and insurance.

4. Dangerous Electrical or Plumbing

Old knob-and-tube wiring or rusty pipes can mean big safety issues.

5. Pest Infestations

Termites, mice, or carpenter ants can damage the structure of a home over time.

If you run into these, you can still make an offer on a house, but only after you’ve gotten a detailed report and know the costs to fix the issues.

Use Red Flags to Your Advantage

Here’s the cool part: spotting red flags doesn’t mean the deal is off—it might actually work in your favor.

You Can Negotiate

Let’s say the inspection finds issues with the roof. You can:

• Ask the seller to fix it

• Request a credit at closing

• Offer less than asking price

Some sellers will work with you. Others won’t. Either way, your agent can help you make the best move.

You Can Walk Away

If the red flags are too big, and the seller won’t budge? You can walk away without losing your earnest money—as long as you have an inspection contingency in your offer.

This is why working with an experienced REALTOR® matters, especially in hot markets like Southern NH and Litchfield. They’ll help protect your money and your future.

A Real-Life Example

Let’s say you’re shopping for Litchfield houses for sale and find a sweet little cape-style home. It’s got a great yard, new kitchen, and a cozy vibe.

But during the showing, you notice a musty smell in the basement.

You make an offer with an inspection contingency. The inspector finds signs of mold due to poor drainage outside. The cost to fix? Around $4,000.

You talk with your agent and ask the seller to cover the repair cost at closing. The seller agrees.

Boom—you just saved thousands, and you still got the house you loved.

That’s how you turn a red flag into a win.

Questions to Ask Yourself Before You Make an Offer

Still not sure if you should make an offer on a house with some red flags? Ask yourself:

• Do I love the location and layout?

• Can the issues be fixed with my budget?

• Am I getting a fair price (or better)?

• Is the seller willing to work with me?

• Is this a short-term or long-term home?

If the answers lean toward yes, it might be worth moving forward.

Tips for Buyers in Southern NH

Buying a home in Southern NH has its perks—great towns, good schools, and lots of variety. But with older homes in some areas, red flags pop up now and then.

Here’s how to stay ahead of the game:

• Look at newer listings: Homes built in the last 10–20 years may have fewer issues.

• Shop smart: Litchfield, Hudson, and Londonderry have a mix of styles and ages. Your REALTOR® can guide you.

• Be ready to act fast: The good homes in Southern NH houses for sale go quickly. Know what matters to you and be ready to move.

Should You Still Make an Offer?

Here’s the truth:

Every home has something. Even new homes can have quirks or surprises. It’s not about finding the perfect house—it’s about knowing what you can handle and what’s worth walking away from.

If the red flags are fixable, and the home fits your needs? You might still be looking at a great deal. But if the problems are too big, and the seller won’t work with you? Walk away with your head held high.

Buying a home is a big decision—but it doesn’t have to be scary. With the right agent, the right questions, and a little planning, you can make a smart move—even if the home isn’t perfect. Go ahead and keep your eyes open, trust your gut, and let your REALTOR® guide you through the red flags.

If you need more information on whether to make an offer on a house, or are ready to sell your house give us a call at (603) 883-8840. You can also sign up for your dream home search or reach out to Our Agents for more information. We’d love to help you with your real estate needs.