When purchasing a home there are many factors to consider. Your home costs a lot of money so you want to make sure you aren’t walking into a money pit. To avoid a money pit, you can get an inspection, pick a good location, and figure out if a fixer-upper is worth it.
Getting an inspection on a home before you purchase is an important way to prevent walking into a money pit. While the inspection itself will cost you money, typically between $300-$600 dollars, it can save you in costs associated with large home repairs. An inspector will check the home for any safety issues, signs of pest infestations, signs of structural issues, and can help you predict future expenses. Once you have an inspection report, you can decide if the home is worth the purchase.
Many people just consider the age of the home and needed repairs to determine if the home is a money pit. However, there are other factors such as the location of the home. Your location and the risks it comes with can affect your home values. If the neighborhood is unsafe or if the homes around it are not well kept, this will decrease the value of your home over time. Especially if you don’t plan on being in the area long, you will want to look for a home that has good resale value, so you don’t lose money.
For many homebuyers, buying a fixer-upper is a draw because they are usually cheaper, and you can make them your own. While the home sale may be cheaper, fixer-uppers can turn into money pits if you are not careful. The first thing to consider is if you will have the time for renovations. Next you need to assess how many renovations you would need to do versus how the home is priced. If it is priced similarly to other homes in the neighborhood that don’t need fixing, you may want to move to a different option.
Because you are spending a lot of money, avoiding a home that is a money pit is important. Take your time during the process to find out everything you can about the home. A longer wait is well worth it to avoid a home that will drain your resources.
Check out this article on how to avoid surprises when selling your home!