Four Common and Expensive Real Estate Problems to Avoid
Buying a fixer upper in the real estate market can be financially smart. You often get a great price for something that needs renovating. You can quickly add value to the house by making regular repairs and updates to it. In the meantime, you can also live in the house while you fix it up, thus saving you the cost of rent. However, before you jump into a real estate project, make sure you are evaluating the house for any expensive problems. These are some of the most common household problems to look out for.
Problems with the foundation
Foundation problems can be very expensive. It can make the entire structure of the house dangerous. It could even affect your ability to close on the house, depending on the type of mortgage you are using. If you are paying in cash or this aspect is missed, it can make it impossible to sell. If your intention is to fix the house up and then sell it for a profit, you would not be able to do this with foundation problems. Always get a foundation inspection done on a house that has structural damage already.
While some electrical problems can easily be repaired, some of them could potentially be very dangerous. Your initial inspection should include electrical inspections, but this is not always the case. If electrical was not a part of your mortgage inspection, make sure you have it inspected by a licensed electrician. Faulty electrical can cause house fires, which could ruin your entire house. It is also a good idea to have the electrical updated, as new electrical practices are safer.
The problem with mold is that it is often deep in the walls or ceilings, where you cannot see it. In fact, most homeowners do not even identify that they have a mold problem until they start tearing down walls and ceilings. Mold growth can result in a dangerous living situation as well. The mold spores get into the air that you breathe and can cause serious health problems. Sometimes, mold removal is easy and affordable. Other times, however, it requires a complete replacement of the area, as well as asbestos testing.
Mold cleanup can also be timely. If your goal is to quickly flip around a house, having to schedule a mold cleanup service and asbestos testing can really slow down the process. The problem with asbestos testing is that mold removal requires tearing down walls and drywall pieces. Many older hours are built with asbestos and although it is not harmful untouched, removing mold requires that it is touched.
Anytime you look at a house for purchase, make sure you are evaluating for any water damage. If you can see a small amount of water damage, it is likely that there is even more that you cannot see. A single sheet of drywall standing upright with its edge sitting in a half inch of water can wick water up to 6 inches in less than three hours. Mold will quickly follow. Water damage is one of the most common household problems and also the most expensive. Based on Floodsmart, a 2,000 square foot home undergoing approximately 12 inches of water damage could cost more than $50,000. That could severely cut into your household renovation budget.
Fortunately, there are tests that look for water leak detection. You can get this inspection service through a professional inspector or a licensed plumber. Additionally, you will require the plumber?s service for the water leak repairs. Water damage is one of the leading causes of failing an inspection. Some homeowners will attempt to cover it up, in order to sell the house.
Purchasing an investment real estate property can be rewarding, as long as you do your due diligence and research. The most common and expensive household problems to look out for include asbestos testing, mold inspection, foundation problems, electrical problems, and water damages. Depending on the extent of the problem, home buyers should generally avoid buying a house with any of these problems.