Wouldn’t it be great to purchase an older home below market value? All you would have to do is invest a little time and money renovating it and—viola—you have a semi-new house that’s worth twice the amount that you actually paid for it.
Great investment, right?
Yes, however, buying a fixer-upper can be a major burden if you don’t take a few important things into consideration first. Before you purchase that older home that you may feel has so much potential, make sure that you’re prepared and up for the challenge. The following are six tips on what to look for when purchasing an older home.
Tip #1: Location. One major factor that you will want to consider when purchasing an older home is the neighborhood that it’s in. Buying a fixer-upper is one way to purchase a house in a quality neighborhood that may otherwise be out of your price range.
Tip #2: Energy efficiency. Many older homes are known to be drafty due to poor insulation. During the cold winter months, the wind blows directly through the windows and doors, leaving the house feeling as though you’re living on the outside.
Upgrading to energy efficient windows and installing insulation can be costly. However, there are several companies that offer affordable rates. Get quotes from at least 2 to 3 companies before hiring a contractor.
Tip #3: Water Damage. At one time, builders from previous decades didn’t realize that water in basements could cause serious damage. Neither did they know that a wet basement can develop mold and mildew which can lead to serious health problems.
When buying an older home, keep in mind that the original builder more than likely did not address the issue of water damage in basements. If this is the case, you will have to upgrade your basement in order to keep moisture and wetness where it belongs, outside.
Tip #4: Structure. It’s important that your home’s structural code is up to date in order to guarantee long-term housing for you and your family. Older homes are known to become infested by termites and even decay from leakage. Hire a professional home inspector to inspect the condition of the home before purchasing it. An inspector will check for defects and other problems.
Tip #5: Heating systems. Be aware of electrical, plumbing, and heating systems that may need to be updated as well. Keep in mind that older electrical systems of yesteryear are passé and not able to withstand the increased electrical demands of modern times.
Tip #6: Plumbing systems. If your fixer-upper already has an upgraded pluming system, you’re very fortunate. If not, there is a possibility that the plumbing system may have out lived its life expectancy. Therefore, it will eventually cause linking problems during the most inopportune moment.
The good news is that any structural problems that an older house may encounter can be fixed. Just make sure that you conduct thorough research on the cost of upgrading your home. You may even want to consider negotiating a deal with the seller.
