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How to avoid fixer upper or money pit peril.

Buying a fixer upper can be rewarding and cost effective.  However as Joyce Wayton and her husband Craig found out, you may “have already bought a place and it’s slowly dawning on you that you’ve bought a money pit” as Romana King reports in her summer 2011 MoneySense article “Fixer Upper orMoney Pit?

 

The home listing may appear as “fixer-upper” or “handyman’s special” and can, for the right buyer, be the dream home you otherwise couldn’t afford.   On the other hand it could also be the dreaded “money pit”.   In King’s article, Charles Sezlik, an Ottawa-based realtor says, “At the end of the day, dramatically underpriced homes usually  mean big problems.”

 

As “Joyce confesses, they didn’t have the home inspected by a professional before they bought.”  Sezlik makes the point, “it’s worth paying for an objective outsider’s second opinion.”

 

If you’re not sure if you are purchasing your future dream home, knowing “how much it will cost to turn your diamond in the rough into a gem” will help.  The inspector’s report and your attendance during the home inspection should provide you with a starting point to be able to research what it will take in time, effort and money to revitalize your fixer upper.

 

Consider the cost of a home inspection done by a knowledgeable and nationally certified professional home inspector as part of the investment in your home and peace of mind.   Financially, it is generally the smallest cost of a home purchase, yet it can potentially save you the most money.

 

 

 

Fixer upper or money pit?

5 tips for first-time homebuyers

In the article by Routers Money, posted January 18, 2011 entitled “First time buyer? 5 tips on how to avoid a money pit“, David Tammy, President of the American Society of Home Inspectors (ASHI), makes several reasonable points concerning the value of home inspectors.

 

Tammy states “If you walk in and the basement is wet or there is mold growing on the walls then you don’t have to be a rocket scientist to know there’s a problem, but most homeowners don’t have the expertise to do a comprehensive inspection and determine if there are significant and real problems with a house.

 

Buyers should come armed with specific questions for an inspector: How long will the inspection process take? Do you specialize in residential versus commercial property? Do you maintain membership in a professional home inspection organization? ”

 

Here are five tips to help you ensure your home purchase is not a money pit.

 

1.  Open your eyes and your nose.  Visible signs of water stains or pooling could indicate potential foundation or structural issues.  This could also result in potentially costly secondary electrical problems.  Nasty smells could indicate mold which could also be expensive to remove.

 

2.  Don’t be seduced by shiny appliances or expensive counter tops.  Cosmetically covering things up are home “flippers” specialties, and they may hide underlying problems.

 

3. Consult a professional home inspector.  Ensure that your home inspector is qualified, experienced, and belongs to a reputable licensing certification body. This will help you get reliable and unbiased information about the condition of the house you are considering to buy.

 

4. Get the inspection report in writing.  Documentation and photos may help with future issues where insurance claims may be disputed.

 

5. Read the fine print.  Don’t sign the purchase agreement unless there is time to complete a home inspection prior to finalizing the deal.  This simple tip could be the difference between buying a trouble free home or a “money pit.”