States where homebuyers are most likely to be ripped off

Does the home you are considering buying have hidden problems such as water leaks, electrical problems, or plumbing problems?

You could be buying a “lemon” – a home with undisclosed problems that could cost the owners thousands to address. If you’re in one of the states highlighted by a new study of “lemon” homes, you may want to take a closer look before you buy.

Real estate data site MovingPlace.com looked at a variety of common home problems in each state, including the percentage of homes with issues involving the foundation, water leaks, electrical system, plumbing, roof and windows.

Combining that data, the study found that Rhode Island was the state most likely to have homes with hidden problems, followed by Ohio, Massachusetts, Connecticut and Iowa. States where homebuyers were least at risk of finding lemons were Nevada, Florida, Utah, Hawaii, and Texas.

The report found that the states that top the list are generally located in the “Rust Belt,” which includes old industrial regions stretching from New York across the Midwest. In general, homes in these states are generally older, experience harsher winters, and in some areas, higher humidity as well.

“In general, buyers and renters in Rust Belt and metro states face a much greater risk of encountering a lemon home than in other areas, which means anyone looking in these areas should be more careful and aware of common structural and systemic issues,” the MovingPlace.com study said.

Aging homes contribute to the problem

Other data also pointed to the growing problem of aging homes on the market. The Harvard Joint Center for Housing Studies found that in 2023, the average age of a home in the United States will be 44 years.

That’s part of what’s driving up housing repair costs, a number that has jumped from $404 billion in 2019 to a projected $600 billion through 2025, according to a Harvard study. This report found that spending on maintenance for homes built before 1980 was 76% higher than for homes built after 2010.

“The housing stock is older than ever, and critical improvements are needed to replace aging components,” the report said.

How to discover a “lemon” house

In order to avoid growing lemons at home yourself, it is important to conduct a home inspection. More than one in five buyers waived a home inspection in September, National Association of Realtors data showed. Although it may seem like a quick way to beat the competition in a bidding war, it can lead to major problems down the road.

In fact, MovingPlace.com also suggests hiring professional inspectors, such as plumbers or roofers, especially if the home is located in a high-risk area. If the area has a history of severe weather, storms, freezes and flooding, it is especially important to do your due diligence.

Prospective buyers should ask about the home’s repair history, as homes with a more complete set of repair records, permits and inspections are less likely to have unexpected problems.

Finally, just because a home gets cosmetic upgrades doesn’t mean there aren’t needed repairs lurking underneath. Home buyers should watch for moldy odors, signs of patching, or uneven floors for signs of larger problems.