There are plenty of good reasons why buying an older home can be a great investment. Older homes have intrinsic value that appeals to our sense of belonging, especially if they are well-maintained and located in a desirable neighborhood. Older homes are prestigious and are a wonderful place to raise a family because they are truly homes and not just the ordinary place to live until you can afford something better.
Buying an older home is not without risk, however. Some older homes are elegant and attractive from the curb that turn out to be financial black holes for the unsuspecting home buyer. Falling in love with an older home for its style and beauty is often the first mistake an awe inspired home buyer might make. The second mistake is to overlook the necessity of observing caution when making a decision to buy.
To the untrained eye, an older home, or any home for that matter, can look nice and trouble free, especially if it is sporting a new coat of paint and a new roof. But trouble often lurks in the unseen and cleverly disguised corners that the home seller doesn't want you to know about. This is why is it extremely important to hire a professional home inspector to inspect and report the true condition of the home to the buyer.
A professional home inspector will examine every aspect of the home, new or old in detail. They will look at every system and their components, including the heating, cooling, sewage, plumbing, electrical systems. They will evaluate the condition of the house from top to bottom, from the roof to the basement and also consider the condition of the driveway and walkways, as well. Then they will provide the home buyer a report of their findings.
Included in the home inspector's report is information about insects, mold, and vermin that are not easily seen during the usual home buyer's walk through when accompanied by an aggressive real estate agent. Prepared with the home inspection report, the home buyer can begin to consider the difficult questions and answers about whether or not to buy the older home.
Chances are that some problems are going to be uncovered as a result of the home inspection and the home buyer must weigh the financial impact of each one carefully. Here is a brief checklist of factors that figure into making an informed buying decision.
What is the cost of repairs? Home buyers should get at least three estimates from reputable repair service companies. Unless you are a total do-it-yourselfer and the repairs are within your capability, you should rely on the estimated cost of repairs as additional expenses that you will incur after buying the home. Often, the advice and recommendations that the estimators give will prove useful, as well.
How much time will repairs take? Again, if you are a do-it-yourselfer and you want to buy a fixer-upper, time is not much of a factor. However, if you are planning on hiring a repair service to renovate or repair problems, time is important. This is especially true for repairing critical systems such as heating and plumbing.
What permits are required? Remember to check with your local code enforcement officer before beginning work. What types of repair work requires a permit varies from community to community, so be sure to check first. There's nothing worse than having a well-meaning public official zealously descending upon your home with a stack of citations with your name on them.
Does the repair work require a contractor? Some situations are just beyond the capabilities of the DIY person. Take sewage and septic or roofing problems for example. Working with contractors can be intimidating and expensive if you don't know what questions to ask and what your legal rights are. Be sure to research the contractors in your area thoroughly and get references before deciding which one to hire. Sometimes the cheapest contractor is not always going to be the best. A good rule to follow is to pay attention to your gut-feeling you get when first meeting a candidate. If you sense something isn't quite right, don't hire them, find someone that is professional and makes you comfortable with their services and reputation.
Do the repairs qualify for government grants or assistance? Some repairs, especially energy efficiency repairs will qualify for government grants or tax credits. If so, you can save some money by not only repairing but also by upgrading the system. Energy efficient heating, cooling and insulation are good candidates for government grants.
Should you repair, restore, or upgrade? Some older homes have unique appliances and fixtures that add value to the home. If they are broken, a decision has to be made to repair, restore, or upgrade them. This can be an expensive choice in some instances, as finding a source of materials and parts can prove difficult. Sometimes, these items are what add the most value to older home's charm and are worth the expense.
Do you need to modernize the home? Many older homes still feature outdated power panels and electrical wiring. Many lack what we now consider indispensable utilities such as cable television and network wiring. Upgrading the technical conveniences of the home is going to add to the cost of ownership.
Is the home listed on the National Register of Historic Places or in a Historic Neighborhood? Homes that are listed on the National Register are wonderful places to live and raise a family. However restrictions on making renovations that significantly alter the appearance of the home are likely to apply.
Buying an older home, especially one with a great deal charm and a bit of history can be a great source of satisfaction and pride. Be sure to have a professional home inspector conduct a detailed inspection of the home and consider the cost, repair time and compliance issues. Serious home buyers will take consider these factors before making a decision to buy an older home.