Top Tips When Buying Older Properties for Your Investment

Buying Older Properties

Older properties have a lot more character and usually much more space than newer ones. These factors offer more benefits and can make them a better investment. However, there are also many financial problems linked to old homes. You will need to do your research and follow these top tips to make sure your potential real estate is the perfect investment.

Have a Professional Check the Property

There are many things that can go wrong with an older home. It could be liable for flooding, there could be issues with the structure or it may have heating problems. Make sure you hire a professional to check the property and create a survey report. This will help pinpoint any areas that need immediate work and areas that may need attention in the future.

When you find problems, there are a few options. You could:

  • Ask the seller to make the changes before you put an offer in.
  • Offer a lower purchase price with the updates and costs in mind.
  • Walk away from the property and find one that requires much less work.

The choice is completely up to you and will depend on your needs. Make sure you have your financial needs in mind to avoid overspending and being out of budget.

Buying Older Properties

Look Out for Any Moisture Issues

As houses settle, there is the risk of moisture problems. This will usually occur in the basement but there may be other signs. Keep an eye out when looking around the home and never be afraid of asking the seller or real estate agent if there is anything that you need to know. Many sellers will try to cover up water damage by repainting but cracks can form.

The problem with water damage is that it can weaken the structure of the home; depending on the type of water damage. This creates problems in the future financially and can lead to your investment losing money. You never want to spend more fixing issues than you will ever gain back. If you find out that there is water damage, fully estimate the cost of full repairs to make sure the house is really worth the seller’s asking price.

Check the Wiring Is Up to Standard

Many homes built in the 1920s and 1930s were created with knob-and-tube wiring. These are now safety risks and need to be updated. The problem is that rewiring costs a fortune and will not be an easy task. You could find that you spend weeks fixing the problems, especially if you find others along the way. Find out more about the wiring before you agree to purchase the property.

There is the possibility of asking the seller to update the wiring. There may be many other buyers thinking about the same thing. Another option is to ask the seller to reduce the home considerably with the rewiring work in mind. Do not think that you can get away with the old wiring. While nothing may have gone wrong recently, there are dangerous risks for the future and it can lower your property value when it comes to selling.

Before you buy a home, you need to make sure that it is safe to live in. This is especially the case with older homes. While they do have character and offer much more space, they can be extremely expensive to get up to standard. There is the option of asking the seller to make changes or to lower the offering price but you are not guaranteed to gaining the home in the way that you want. Sometimes it is better to place your investment elsewhere.

Author bio:

This guest post was written by Freda Ahenakew, a real estate agent. She has seen many people search for the perfect older home only to be disappointed with the work required and makes sure people are away of all problems associated with any Swansboro North Carolina real estate that they consider.

Leave a Reply