10 Ways to Spot a Catfish Home Before It’s Too Late

SAVING & SPENDING - HOME & AUTO
Endless repairs and shoddy renovation work could lurk beneath a shiny exterior.
Updated April 11, 2024
Fact checked
house hunting

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

After touring endless homes and losing out on countless offers, you spot a house that looks perfect. But is it possible that a little deception is hiding below the surface?

A “catfish house” is the latest term to describe a home sold as newly renovated and updated but hiding anything from shoddy electrical work to questionably installed cabinets.

Here are 10 tips to avoid buying a catfish house. Following this advice can help you avoid wasting money on one of these money pits, causing you years of stress.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

How to become a member today:

  • Go here, select your free gift, and click “Join Today”
  • Create your account (important!) by answering a few simple questions
  • Start enjoying your discounts and perks!

Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.

Become an AARP member now

Be skeptical of online photos

simona/Adobe woman surfing the web

Try not to get caught up in the excitement of Instagram-worthy online photos. If you go into the open house expecting your dream home, there's a higher chance you'll look past the obvious red flags.

Be skeptical of anything you see online that looks too good to be true.

Carefully check the floor plan

NicoElNino/Adobe architect designing blueprint

Before you even visit the house, take a closer look at the floor plan and the home’s square footage.

Photos can be deceptive, meaning you could show up expecting enough room for a family of five and finding a tiny house instead.

Make sure each bedroom is actually a bedroom

Rawpixel.com/Adobe family buying new house

Don’t get caught buying a three-bedroom house only to discover that two of the bedrooms aren’t up to code. Make sure every bedroom meets the requirements in your locality.

At the very least, you want the price you pay to reflect the true status of those bedrooms.

Resolve $10,000 or more of your debt

Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1

How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.

Try it

Bring in specialized inspectors

Michael O'Keene/Adobe home inspector

Whether it’s a septic inspector, electrician, or plumber, it’s worth bringing in a specialized inspector to examine every bit of an old home or recent renovation.

Let these experts kick the tires on the house and offer their honest opinions on its condition.

Peel back the layers

pressmaster/Adobe housewife looking at plumber

Do you suspect paint over bargain-basement cabinets? Carpeting over deteriorating floors? Peel and stick tile over a cracked tile floor?

An inspector can help reveal quick and cheap cosmetic upgrades that probably won’t last until the next season.

Scan for filler that hides foundation cracks

bildlove/Adobe house foundation repair

This is a big one: If there is filler or paint covering up major foundation cracks, you might have a catfish house on your hands.

Before buying a home, bring in an experienced inspector to ensure you don’t end up in this expensive predicament.

Look at the condition of the paint

agenturfotografin/Adobe man with inspection checklist

Slapping a coat of paint on the walls can hide many types of troubles. But if you look closely, you might uncover the secrets hiding beneath.

From cracks in the walls to shoddy repairs, there will be differences in the texture that reveal the issues lurking below.

Note inconsistencies in outlets or hardware

Iftikhar alam/Adobe electrical outlet on a white wall

Someone quickly flipping a house for a catfish sale might not take the time to make the wall plates or doorknobs match.

If you notice loose hardware or detached outlet plates, it might be time to take a closer look.

Don’t overlook insect damage

Koonsiri/Adobe traces of termites eat wood

Look for signs of insect damage. Sagging drywall or wood that sounds hollow when tapped might indicate termites, for example.

Even if everything looks fine at first glance, a closer inspection might reveal that the home’s structural supports have been weakened.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today

Feel the floors

Alex/Adobe man refinishing hardwood floor

Check the floors carefully. If there's a dramatic slope or a bounce with every step, there's a good chance that some unexpected renovation work might be in the cards.

Bottom line

Darren Baker/Adobe couple beside house for sale

When you buy a home, there will always be unexpected repairs. But those costs should be reasonable.

Following the tips in this story can help you get ahead financially by avoiding a catfish house that can put a major dent in your finances.

Choice Home Warranty Benefits

  • First month free
  • Protection for unexpected expense
  • 24/7 claims hotline
  • Network of over 15,000 technicians

Want to learn how to make an extra $200?

Get proven ways to earn extra cash from your phone, computer, & more with Extra.

You will receive emails from FinanceBuzz.com. Unsubscribe at any time. Privacy Policy

  • Vetted side hustles
  • Exclusive offers to save money daily
  • Expert tips to help manage and escape debt