Most of us have heard of, a particular, home purchase, as a money – pit. This, generally, means, that, after owning a particular house, so many issues, challenges, etc, are discovered, which necessitate, much expense, for necessary, repairs and renovations. While there are many reasons, for this, in the vast number of instances, it occurs, because, not enough, emphasis, and/ or attention, was paid, to the comprehensive report, and examination, of a profession, home inspector, or engineer. In order to avoid the ramifications of owning a money – pit, wise consumers, do everything, possible, and realistic, to know, what they are buying, before they purchase. Doesn’t this make sense, especially when you consider, for most, their house’s value, represents, their single, biggest, financial asset? With that in mind, this article will attempt to briefly consider, examine, and discuss, 5 considerations, to minimize this trap.
1. Qualified, experienced, recommended, home inspector, and/ or engineer: Since most of us, are not experts, nor qualified, to examine the condition of your prospective house, before purchasing, nearly every attorney strongly recommends, getting a home inspection, before agreeing to purchase any real estate. Ask around, to others, you know, personally, as well as your real estate professional, and find the best one, to assist you, and direct you, properly! The more you know, in advance, the better, off, you will be!
2. Major, versus minor renovations/ repairs: While, nearly every house, needs some work, you should identify, routine things, from big projects, and deal – breakers! However, when you know, in advance, as much details, as possible, you should use this information, in order to add, these costs, to your purchase price. Can you afford this total cost? Are you getting what you need, and the best, bang – for – the – buck?
3. Needed, versus cosmetic changes: Most home buyers make some changes, to best meet their personal tastes, etc. This includes minor renovations, painting, and addressing, perhaps, certain appliances, flooring, etc. These are regular, expected, cosmetic changes, and must be distinguished from expenses, which will arise, because of necessary issues, etc.
4. Over – estimate costs: Be wise, and over – estimate the costs of any renovations and repairs, because, generally, they end up, costing more than our estimates, expectations, etc! Be prepared!
5. Add 1st years renovations and repairs to purchase price: When you have a better idea, what to expect and anticipate, you will be ready to proceed, accordingly. Fully consider those repairs and renovations, you have been informed of, and add these, to the purchase and closing price, and expenses.
There will always be some unanticipated expenses, but a wise homeowner, proceeds, as prepared, as possible! Will you commit to being a more educated consumer.