A friend of mine is finally considering buying a house. I think this is great for him because the timing could not be better. I believe the real estate market is starting to bottom out and the prices are very affordable. Since he’s still single, he can buy the house and rent out the empty rooms to offset some of the costs involved in being a homeowner. Not only will he save money, he will continually build equity on his new property and will be able to use that to help him receive big loans in the future.
Although some properties may seem like a very good deal, there should still be much caution that need to be practiced before signing any documents. I read somewhere that about 40% of previously owned homes have at least one serious defect or problem. Most of these defects can be very costly to replace and/or repair so they must be considered into the price of the home. Some of these serious home defects include the following:
- Failing heat pump heat exchanger
- Failing air-conditioning compressor
- Moisture/dampness in the basement
- Inadequate or aging roofing and/or flashings
- Bugs especially termites and cockroaches
- Mice droppings
- Chimney cracks and separation
- Horizontal foundation cracks
- Major house settlement
- Inadequate electrical system
When visiting the house, it may be tough to find any of these red flag items during the initial tour. Unless you’re a mechanic or electrician, you’ll never know if the air conditioning is in bad condition or if the electrical system is undersized. However, there are still a few items that you can see immediately that should give off a red flag warning.
Smell
When the house gives off a musty or dampness odor, especially in the basement, it’s usually an indication of molding of some sort. Either there has been a previous incident with flooding in the basement or there is a crack in the foundational walls, allowing moisture to seep into the house. In either case, getting rid of mold in your walls can be very costly. It may not be a deal breaker since it’s very repairable, but it should definitely be addressed during the negotiations.
Water Stains
Not all water stains on the walls are bad. Some may occur due to condensation in the piping, which is no big deal especially if only the drywall is affected. However, if it’s not properly inspected, water stains can also mean leaking roof or dripping pipes. These repairs can be costly as well so don’t brush it off thinking it’s no big deal.
Slope
I prefer homes that are elevated higher than the normal ground rather than homes that are sitting lower than the normal ground. If the driveway is sloped towards home, it means that whenever there is rain, all of the water will flow towards the house. If the house is built adequately, there should be no flooding issue. But if the foundation is too old and the lining is wearing off, it could mean big potential for flooding. Try to avoid homes that have these kinds of slopes.
North Facing Walls
Whenever it snows in my parents’ neighborhood, my parents’ house is always the last house with melting snow. I was always wondering why this was the case, but then I realized that their front yard is facing north. If you understand how the sun rises and sets during the winter time, you’ll notice that it’s mostly on the southern axis. So, south facing walls will see greater sun compared to north facing walls. If you’re looking for homes in colder climates, avoid homes with north facing front yard to avoid having to deal with unmelting snow on the driveway.
Uneven Painting Pattern
If you notice the painting pattern on the wall to be a little off, it could mean that only a certain area was repainted. It could mean that the owner is trying to hide some damage that occurred previously. Inquire about the uneven patterns prior to making the purchase.
Section 8
Section 8 housing is everywhere. It is a type of federal assistance provided by HUD to help subsidize housing for low-income families and individuals. Wherever there is Section 8 housing in a neighborhood, the value of homes drop significantly. I would avoid homes where Section 8 housing exists.
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Good tips. Find a good home inspector to help you go over the house thoroughly.
Is there a way to find out if a rental is section 8? That would be interesting to see. I think they are everywhere.
ooo, that’s a good question. if you find a website that locates all of the section 8 housing, please let me know!
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