Look Past the Paint Job!
House hunting for a new home can be hard work. It’s unlikely that you’ll find the perfect home on your first day, no matter how many houses you look at. SO, if you’re looking for house hunting tips, here’s a good one: if you can keep an open mind, you may be able to find a house in need of some care that can become a great place to live — and may even be available below market value.
With these homes, you have to look past the paint job to find the hidden gem. Just make sure you know — and factor in — all the necessary repairs before you make your offer. A little TLC can go a long way in making a fixer-upper into your ideal home. Before you jump at the chance to take on such a project, though, consider the following house-hunting tips to make your experience with a fixer-upper easier.
Most Important House Hunting Tip: Get an Inspection!
Some repairs are easy to spot, while others are hidden. You can work with what you know, but what you don’t know can turn a worthwhile investment into a money pit. To fully understand the amount of work needed, hire a home inspector before you make an offer. Getting a thorough inspection is a house hunting tip you can’t ignore.
For instance, you may want to install a new kitchen floor or give the home a new paint job, but repairs can go further than just a new coat of paint. A home inspector can discover if there’s any structural damage that needs to be fixed. A home inspection covers such hidden issues as:
- Foundation weakness
- Roof damage
- Water damage
- Electrical, plumbing and HVAC system problems
- Mold issues
- Pest infestations
Budgeting for Repairs
Another house hunting tip is to budget for the repairs you know you need, while ideally keeping something aside for surprises. Once an inspection has uncovered what needs to be fixed, figure out how much each one costs. Will you do the work yourself or hire it out? Create a budget that works for you.
Another thing to budget is your time. You may be living in the home while repairs are going on. It’s a challenge to live this way, especially for your spouse and family. The home may be a steal at the listed price, but if the cost of repairs exceeds what it’s worth, it’s not a sound investment — either in money or time.
Negotiate the Price
Negotiating a fair price is a house-hunting tip that can make or break your investment. Once the home’s been inspected, seek out a contractor to give you an honest estimate on how much the repairs may cost. You can use those numbers when you return to the negotiation table at a time of due diligence (or loan contingency).
For example, if the home requires a new roof, you can negotiate a price minus the roof replacement cost. If you have a long list of fixes, subtract their costs from your revised offer. Once you run the numbers and make your concession offer, remember to stick to the numbers and not make an emotional decision. If you need to walk away from the purchase, know that it’s a financially wise decision.
For more valuable information about buying or financing a house, please visit Zack’s Blog page, or contact him at GoPrime Mortgage, Inc. . (Prime Mortgage Lending and Equity Services, Inc.)
