Before You Buy: Signs a House Will Be a Money Pit

For many homebuyers, a fixer-upper is an ideal starting point on the path toward owning the perfect home. But before you buy a fixer-upper, note the signs a house will be a money pit. The last thing you want is to invest all your time and money into fixing the areas you didn’t plan to. This could eat away at your budget.

Electrical Problems

When you’re touring the house, you may want to investigate the electrical system to ensure it’s not outdated. Otherwise, you risk appliances not working, as well as potential dangers. Also, check and see whether the home has a fuse box or a circuit breaker box. Note that newer homes often have a circuit breaker box.

Also, look at the type of material wrapped around the wires, as anything but plastic sheathing will need an update. This can cost anywhere from $8,000 to $20,000 depending on the problem and size of the home. If you think you’ve found the house, it’s never a bad idea to have an electrician look it over and check for these issues.

Damaged Water Lines

Be on the lookout for signs of a damaged water line during your home inspection, as a broken water line means problems with the plumbing system. There are a few different ways to spot this major problem. Look for:

• Discolored water: Water may be a brownish-red color.
• Low water pressure: Water pressure is minimal in all plumbing fixtures.
• Sound of running water: You may hear running water when no plumbing fixtures are in use.

Fixing a damaged water line isn’t cheap, so when in doubt, ask questions. The last thing you want is to buy a home with damaged water lines only to face devastating damage. It’s also a good idea to find out what material the pipes are made from, as well as the last time a plumber worked on the property.

Sagging Floors

If floors are anything but flat, this could be a sign the structure isn’t sound. In this instance, flooring may appear uneven or feel springy when you walk on it. You may also notice gaps between the flooring and the baseboards. Spotting this is vital, as an uneven structure is dangerous!

Odd Smells

This sign a house will be a money pit is a little more obvious, especially as you’re touring the home. If the house smells bad, there could be various problems, such as:

• A gas leak
• A sewage problem
• Mold in the walls and other areas

Ask questions as you notice problems on and around the property, because you never know what it might be. Contact a contractor if necessary to prevent any surprise blows to your budget. After all, you’re trying to create your dream home, which becomes difficult as unexpected problems arise. Keep your checklist ready as you search for the base for your perfect home!

image credit: twenty20.com