Buying a home is an exciting moment you’ll never forget. That is especially true when you buy a money pit. This term refers to homes that require so much work that buying one is like throwing your money into a pit. The odds are high that you’ll spend more on the house than it’s worth and that you won’t get your money back if you sell it.
Whether you buy a new home built in the last few years or you purchase an older home, you want to protect your investment. Learn how to avoid a money pit when buying a fixer-upper.
Avoid As-Is Homes
When the market is hot, many buyers purchase the first homes they see without taking time to think about what could go wrong. A common sign that the fixer-upper you have your eye on is a money pit is when you buy it as-is. This means that the sellers will not do anything to the home and that you need to buy it exactly as it sits. These homes often require a lot of work that you won’t see until you become the new owner.
Stay Away from Messy Yards
A home with good curb appeal will catch your eye and make you fall in love long before you step foot inside. While a house with a messy yard may have some interior features you love, you should think about taking a step back. If the sellers couldn’t bother cleaning the yard before they put the home on the market, what else did they ignore?
A messy yard is a big sign that the previous owners didn’t care about the home. Take a close look at flower beds and greenery located too close to the walls. They might be hiding damage like a crumbly foundation that requires repair from professional flood damage restoration experts.
Perform Tests
If the sellers won’t let you perform tests, they likely have something to hide. Feel free to walk away from those houses. Any home built in the 1970’s or earlier may have asbestos. This was a popular building material that was later banned because it is also a carcinogen.
You cannot remove any asbestos yourself because only professionals can. Professionals need the right licenses to work around asbestos and dispose of the material. You can use kits to test for asbestos before you buy. Consider using a kit that lets you test for mould, too.
Check for Cracks Inside
When you get inside, always look for cracks in the upper corners of each room and on the ceiling. Even if the former owner repaired some of those cracks, you’ll see new caulk or drywall. Those signs let you know that the roof had a leak and can indicate that a leak still exists. When the roof leaks, water builds up inside the home that will eventually come through the ceiling. The cost of a new roof can range from around $5,000 to more than $20,000 and make the home fall out of your price range.
Conclusion
Buying a fixer-upper helps you save money on a new home. You can do some of the work yourself and hire pros to handle some of the other jobs. The problem is that you risk buying a money pit, which is a house that costs more than you expected to fix up. They can have serious structural and foundation issues as well as use asbestos and other dangerous materials.
Learn how to avoid these homes before you look at the local market. Looking for cracks and other damage, running tests, and staying away from as-is homes and those with messy yards can help you buy a fixer-upper that isn’t a money pit.
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