5 Steps to Avoid Buying a Money Pit

If you are buying a home, but have a bad feeling that it could be costlier than it appears, you may be right. Don’t buy a home that will turn into a money sucking black hole. A black-hole-home is a home that turns out needing what seems to be an endless amount of repairs, costing you a pretty penny frequently. Homeowners have lost their minds over these homes.

There are strategies that buyers can act to prevent their future home from becoming a bust. Here are the five steps to avoid this disaster.

Attend inspections

Be present at all the inspections; from the overall home inspection, to the pest inspection, roof, and other inspections. The inspector will physically show you what the problem is, and what needs to be done to fix it. They’ll tell you how urgent these issues are, and what they might cost. While being there you have the ability to ask them questions, which is the best thing you can do for yourself.

Read reports and disclosures

Reading what they’ve reported is crucial to knowing if you’re buying a money pit or not. You will not only want to read all the reports by inspectors, but any provided by the seller. In their reports you will want to read up on any repairs they have made, repeated repairs, water and leaky issues, or anything else that is essential to a home functioning properly.

Take note of which repairs have greater urgency and which ones will be costlier. Talk to your agent if there are any questions they can answer, and lead you in the best direction.

Get multiple repair bids

Even though the inspector gave you a “price”, it’s rarely accurate. Home buyers find themselves in the middle of the black hole once they see all the repairs stacking up. In order to get the best deal possible, it’s best to get multiple repair bids from reputable contractors. These multiple bids give you room for negotiation when choosing which bid to go with.

Don’t get overconfident

Unless you are a construction professional, most minor home improvements take more time and money doing on your own.  Homeowners expect they can cut costs by doing themselves, but you will want to get the bid just to know the price if you find yourself unable to complete them on your own.

Prioritize price reductions and credits over seller repairs

Typically buyers choose their own materials and repair contractors thoroughly, and invest more time into it than the seller would. If home repairs are the only thing standing in the way of the seller making the deal, ask your agent if they can reduce the price, or if a closing cost credit to offset the cost of the repairs. This way everyone can win.

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