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Money Pit Houses to Avoid at All Costs When Buying a Home

Finding out your new home is a money pit is every homebuyer’s worst nightmare. Unlike cars, or electronics, there is really nothing you can do if you find out the home you purchased is a lemon, according to the Local Records Office in Bellflower, CA. Here are some important steps every buyer should keep in mind to ensure their next home doesn’t turn out to be a money pit.

1. Avoid Homes That Don’t Pass Home Inspection

While you can rely on your agent, your broker, and your lender to handle a lot of the grunt work that comes with buying a new home, you should make an effort to be present for any home inspections or appraisals. If you are there in person, the inspector can physically walk you through any items they think require repairs, and offer their professional opinion regarding the magnitude and seriousness of these repairs.

Also, being present at the inspection affords you the opportunity to ask the home inspector about the estimated cost or effort any recommended repairs will require, and whether or not the issues uncovered pose any danger to your safety.

2. Avoid Homes That Require Too Many Small Repairs

Even if you attend the home inspection, you can’t solely rely on the eyes and ears of your agent or lender to catch any issues or problems included in the home’s reports and disclosures. It’s important you read through any notes provided by the seller as well as the inspector and be on the lookout for any repeated repairs, recurring issues, and mechanical malfunctions that have occurred within the home.

You should also review the results of the home inspection and note the cost, timeline, and magnitude of any recommended repairs. Your agent should supply you with information on comparable properties, so you can ascertain the actual value of the home relative to the price you are paying for it.

3. Avoid Homes That Have Been Neglected

Many states actually forbid general property inspectors from supplying potential homeowners with their own estimates of the costs of a home’s recommended or required repairs. One common reason why buyers end up purchasing homes that turn out to be a money pit is that they underestimate the cost and extent of the home’s repairs. Avoid becoming a money pit victim by obtaining several estimates from multiple contractors regarding any repairs detailed within the home’s inspection. These estimates can also create an opportunity for you to renegotiate the price of the home with the seller.

4. Avoid Homes That Have Been Worked on by Amateurs

Unless you yourself are a contractor or work on building homes professionally, it is likely that you will underestimate the time and money required for you to complete what can seem like even the simplest repairs on your own. Plus, the moving process itself requires plenty of time, effort, money, and energy; so be sure to ask yourself how much effort you will really want to devote to improving and repairing your new home after your move.