Avoid Buying a Money Pit With These Tips
Buying a house might be the most exciting adventure of your life, but there are some potential problems you must look out for. You don’t want to purchase what’s your dream home, only to realize later that you are going to break your bank maintaining or fixing it. Some houses appear in good conditions, but you cannot base the decision of purchasing a home solely on the appearance.
There are certain important things you must look out for before making a huge investment. Although a good real estate agent will warn you regarding the problems that they detect, they might not be able to see all of the issues.
If you want to avoid buying a money pit, you will have to pay attention to certain issues. Enlisted below are 4 steps you can take to avoid buying a home that you might regret later.
Consider the Neighborhood
You might think a money pit home to be the one that needs a lot of repairing work. However, even if you find a perfect home, with no other defects, there still exists the risk of it being a money pit.
No matter how good the house appears, if it is in a bad area, you might have a hard time selling it. Simply put, you can still fix a house with problems, but you can’t change the locality.
If you are comfortable spending a few years in a certain area, even when it is not the best locality, then you probably have your eyes on the right property. However, if you are unsure of how long you will stay, you should consider looking for a house in a different neighborhood.
Look out for Expensive Items
If you are planning to buy an old house, make sure you pay close attention to how old different things are. If you have to replace a furnace, cooling system, water heater, or even a dishwasher soon after you make a bid on your new house, you will have to take care of unexpected bills. Additionally, if you spend too much money at the very beginning, you might not get a penny back when you sell the house. You must also take into account certain things like how old is the roof, driveway, and patio, as all these things have a particularly expensive cost.
Check the Basement
Before you actually put an offer on your home, you must look around the basement. In most cases, the basement usually reveals signs of a potential money pit. If you see any sign of past moisture or damp inside the basement, that should be an immediate red flag. You must also check out for cracks in the walls and foundation outside.
Your home inspector will do this for you thoroughly later, but till the time you have a home inspection report, you must think of everything you can do to make an offer in your favor.
Get a Home Inspection Done
A property inspection can give you important information about the condition of a home. From cracks in the foundation to rotted windows to even smaller issues that you won’t catch yourself like a leaky pipe, usually a home inspector is a good investment.
Saving money by paying someone who is not qualified could hurt you in the long run. Therefore, you must always check qualifications, certifications, and experience of a home inspector, before hiring one.
Quality home inspections also help in the negotiation process, because having a written report that has all the problems listed will also help when dealing with the seller.
No one can guarantee you a house that will not cost you in the long run, but you certainly can take a few steps to buy a property that you can call home for a long time. No home is perfect, but there are a few options that are a better investment than others.
