Red flags are often easy to spot — and even easier to ignore.

More than 3 in 4 future home buyers (76%) would be willing to overlook red flags in a home.

Home shoppers are most likely to disregard a red flag for a significantly lower asking price, with more than 1 in 3 (38%) saying a discount could compel them to do so.

Saving money on their home purchase is a strong motivator, especially when 42% think their current standards are higher than what they can realistically afford. The median home sale price in the U.S. is $405,300, but 63% of buyers say the maximum amount they can pay for a home is less than $400,000.

Ultimately, home shoppers are more forgiving of red flags when financial cushions, such as a lower price, help offset the risk. Buyers would also overlook a home’s flaws if the seller offered repair credits (29%) or included a home warranty in the sale (29%).

Not all physical flaws in a home are a dealbreaker, with 76% of future buyers saying they’re willing to purchase a house that needs some renovation work.

Most buyers, however, aren’t eager to roll up their sleeves. About 41% say they only want to purchase a home that needs minor updates, such as painting or replacing fixtures. Just 6% say they’d be willing to buy a fixer-upper.

Buyers could be convinced to purchase a home that needs major renovations only if it otherwise meets all their criteria. In that case, not even the most expensive and time-consuming defects could deter them.

Roughly half of buyers say pests (57%), mold (49%), hazardous materials (49%), and major structural issues (45%) are not dealbreakers in a home that otherwise meets their criteria.

Young buyers are much more willing to tolerate a major physical flaw, either because they can’t afford a home in better condition or because they are unaware of the problem’s true cost:

• 62% of Gen Z and 53% of millennials would purchase a home with mold, compared to 40% of boomers.
• 61% of Gen Z and 52% of millennials would purchase a home with hazardous materials, compared to 41% of boomers.
• 60% of Gen Z and 49% of millennials would purchase a home with major structural issues, compared to 37% of boomers.

Buyers’ tolerance of physical defects has its limits, though.

Young buyers are drawing the line at poor connectivity, with more Gen Z (31%) and millennials (35%) saying a home with bad cell phone service is a dealbreaker than a home with cracks in the ceiling or walls (25% and 26%, respectively) or a home with no central air conditioning or heating (21% and 26%).

Some red flags are obvious, but many physical flaws aren’t always visible — hidden behind walls or under floors.

Sellers are legally required to communicate known defects that would affect a home’s value or safety, but 58% of future buyers believe sellers are not honest in their disclosures.

If buyers discovered a major flaw in a home they planned to purchase, only 12% would walk away from the sale immediately.

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%).

A professional home inspection can help buyers negotiate for repairs or a price reduction, but 55% know an inspector doesn’t catch every problem with a property, and 78% are worried about finding a major issue in their home after closing.

The real estate mantra “location, location, location” has stood the test of time for a reason. Price can be negotiated and a home’s condition can be improved, but there’s no changing a home’s location.

Future buyers say they are least willing to compromise on the location of their home (38%), outweighing the home’s price (31%) and its condition (31%).

That said, buyers are often surprisingly lax in how they define a “good” location and can still be persuaded to purchase a home in a less desirable area.

Half of buyers (50%) say high or increasing crime in a neighborhood is not a dealbreaker if everything else about a home meets their criteria.

More than half also say they would buy in an area with a high risk of natural disasters (63%), in an area with environmental contamination (59%), or in a flood zone (56%).

Although home shoppers are most likely to prioritize the location of their home, price takes precedence for the youngest generation of buyers.

Limited budgets make Gen Z less willing to budge on price, with 39% saying it’s the factor they are least willing to compromise on — followed by location (33%) and a home’s condition (27%).

To stay within budget, Gen Z is willing to purchase a home in a less-desirable locale where property values are lower.

Despite their willingness to compromise on the location of their home, there are still some limits to what Gen Z will overlook.

As they start their careers, Gen Z (30%) is nearly 3x more likely than boomers (11%) to say a home far from work is a dealbreaker. They are also thinking ahead to future family needs, with 29% of Gen Z saying a bad school district is a dealbreaker — more than 3x the share of boomers (8%).

Future home shoppers highly value good neighbors, recognizing they’re an essential part of a good location.

In fact, home buyers say they are more likely to overlook a registered sex offender living nearby (14%) than a generally unpleasant neighbor (12%).

Home shoppers consider college students the most problematic neighbors, with 33% of buyers saying an area with a lot of student or Greek life housing would be a dealbreaker.

Boomers (41%) are the most opposed to living next to college students, but even young buyers not far removed from graduation are eager to avoid them.

Approximately 30% of millennials and 28% of Gen Z say they wouldn’t live in an area with a lot of student housing, reflecting possible concerns about noise, high turnover, and questionable property maintenance that could lower property values.

More than 1 in 5 buyers (21%) also say they wouldn’t purchase a home in an area with a lot of neighbors who have opposing political beliefs — although this is more important to Gen Z (25%) and millennials (23%) than it is to boomers (15%).

For many buyers, bad neighbors aren’t limited to the people living next door. They can take many forms, from a noisy stadium to a nearby dispensary.

More than 90% of future home buyers say they would not consider purchasing a home on the same street as a long-term construction project, factory, prison, or shooting range.

Even if a home’s location and physical features meet buyers’ criteria, there are plenty of situations that can make buyers think twice about a listing.

A difficult seller tops the list of red flags at 49%, reflecting buyers’ concerns that uncooperative behavior could derail negotiations, slow the process, and make an already complex purchase even more stressful.

Buyers are also skeptical of a home’s history, with frequent ownership changes (44%), a shoddy flip job (42%), a prior foreclosure (24%), and a history as a rental property (23%) making buyers reconsider a home they were looking to buy.

A home’s market history raises similar concerns. A long time on the market (43%), an unexplained price drop (35%), and a contract that previously fell through (20%) are all enough to give buyers pause.

Not all buyers, however, are alarmed by these circumstances. Whether they’re simply inexperienced or have a high risk tolerance, young buyers who are desperate to own homes would often overlook these red flags.

• Only 35% of Gen Z and 41% of millennials are concerned about a home that has changed owners frequently, compared to 52% of boomers.
• Only 34% of Gen Z and 38% of millennials are concerned about a home that has been on the market for a long time, compared to 51% of boomers.
• Only 31% of Gen Z and 37% of millennials are concerned about questionable workmanship on a flip, compared to 53% of boomers.