3 in 4 Home Buyers Would Overlook Red Flags to Own a Home

Despite being willing to overlook red flags such as pests (57%) and mold (49%), 78% of buyers are worried about finding a major issue in their home after closing.

ST. LOUIS, June 2, 2026 /PRNewswire/ -- More than three-quarters (76%) of Americans who plan to buy a home in the next five years would be willing to overlook red flags in a home they're considering, according to a new report from Clever Real Estate, a St. Louis-based real estate company.

Pests (57%), mold (49%), hazardous materials (49%), and structural issues (45%) would not be a dealbreaker in a home that otherwise meets buyers' criteria. For the right house, 63% would buy in an area with a high risk of natural disasters, and 50% would buy in an area with high or increasing crime.

Notably, more buyers would be willing to overlook a registered sex offender (14%) living nearby than a generally unpleasant neighbor (12%).

Still, the vast majority of buyers would not consider purchasing a home on the same street as a long-term construction project (93%), factory or power plant (93%), prison or jail (92%), or shooting range (91%).

Location is the factor buyers are least willing to compromise on (38%), outweighing the home's price (31%) and condition (31%).

Affordability appears to be driving the willingness to compromise. Although the median home sale price in the U.S. is slightly above $400,000, nearly two-thirds (63%) of buyers say the maximum price they could afford is under $400,000.

Buyers would overlook a home's flaws for a discount (38%) or if the seller offered repair credits (29%) or included a home warranty in the sale (29%).

Nearly half (42%) of aspiring buyers admit their current standards are higher than what they can realistically afford, and 48% say they would lower their standards if home prices continue to rise.

Generational differences shape what is considered a dealbreaker. About 62% of Gen Z and 53% of millennials would purchase a home with mold, compared to just 40% of boomers.

Bad cell service is a bigger deterrent for Gen Z (31%) and millennials (35%) than cracked walls (25% and 26%, respectively) or no central HVAC (21% and 26%).

However, only 12% of buyers would walk away from a sale immediately if they discovered a major flaw in the home.

Instead, buyers would first seek a professional opinion (39%), ask the seller to fix the problem before closing (25%), or try to negotiate a lower price (19%).

Read the full report at: https://listwithclever.com/research/red-flags-when-buying-a-house/

About Clever Real Estate
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CONTACT:
Nicole Lehman
Clever Real Estate
[email protected]
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SOURCE Clever Real Estate