Details matter — and missing them can cost you big.

Here’s a hard truth: Some of the biggest financial risks in buying a home are buried in the fine print and hidden details that many buyers — and even agents — completely overlook. These aren’t glamorous parts of the home search, but they’re critical.

Let’s break it down.

Flood Zones & Insurance Costs: Know Before You Buy

One of the first things you need to check is whether the property is located in a FEMA-designated flood zone. If it is, flood insurance is usually required by your lender — and it’s not cheap. In fact, in some areas, flood insurance premiums can add hundreds to your monthly payment or even kill your loan approval entirely.

What you should do:

  • Ask your agent to run a flood zone report immediately.
  • If the property is in a flood zone, check to see if the current owner has a transferable policy — it’s often much cheaper than starting a new one.
  • Use House Karma’s insurance quote tool to get a real, accurate number before making an offer.

Insurance Red Flags: Roofs, Windows & Plumbing

Insurers look for risk — and if the roof is too old, or the windows don’t meet windstorm or impact standards (especially in Florida), you may find it:

  • Impossible to get insurance,
  • Only eligible for a high-risk policy, or
  • Stuck paying $5,000–$10,000+ per year for basic coverage.

Other issues that raise red flags:

  • Polybutylene plumbing or aluminum wiring (very expensive to replace).
  • Unreinforced carports or poorly secured sheds.
  • HVAC or electrical panels nearing end of life.

A roof may look fine, but if it’s over 15 years old, most insurers will balk. So don’t just look at condition — look at age and type too.

Unpermitted Work & Missing Certificates of Occupancy (COs)

This is a sneaky one that catches even experienced buyers off guard.

Did the seller:

  • Add a room?
  • Enclose the garage?
  • Install an in-ground pool?
  • Convert a shed into a guest house?

If so, you must verify that the work was done legally, with permits pulled and final inspections signed off. Your lender might catch it, your appraiser might catch it — but sometimes no one does… until you go to sell the home.

And then? You’re stuck with:

  • Paying for inspections,
  • Pulling retroactive permits,
  • Possibly tearing out and redoing work,
  • And higher taxes once the improvements hit the tax roll.

How to protect yourself:

  • Ask for copies of all permits and final sign-offs for any additions or improvements — not just a verbal “yeah, it was permitted.”
  • Require a current certificate of occupancy in your offer (or equivalent, depending on your state).
  • Make sure your agent includes this in writing, in the offer and escrow instructions.

At House Karma, our brokers are trained to check for these red flags early — but remember, it’s your responsibility in the end.

A Common Trick: “We Didn’t Pull Permits to Avoid Taxes”

Yes, we’ve seen it. Sellers sometimes knowingly skip permits so their tax bill stays lower — and that pool or bonus room never hits the assessor’s records.

Sounds clever… until it’s your problem.
When it finally does get added to the tax roll (because you disclosed it during your insurance or lender review), your monthly payment can go up by hundreds per month due to increased property taxes.

Bottom Line: Don’t Assume Anything

These are the things that can blow up a closing or turn your dream home into a money pit. Check:

  • Flood zones
  • Insurance quotes
  • Age of the roof and major systems
  • Window type and impact rating
  • Permit history and final approvals
  • Certificate of occupancy

And get everything in writing — don’t rely on verbal assurances.

The details you miss now could cost you thousands later. Let’s not go there.

At House Karma, we help you look at everything — not just the pretty kitchen countertops. We believe your first home should be a foundation for financial security, not a surprise expense waiting to happen.