Before buying a home, don't forget to check the pipes! There may be more to a home than meets the eye.
Home buyers must remember that this purchase is a huge decision. Avoid getting a lemon by being cautious and deliberate in your search, inspection and selection of every property investment.
In this and future articles, we’ll help guide you through the nooks and crannies of being a savvy home buyer, so you can avoid a few major headaches and save money.
The biggest home buyer hazards lie just below the surface. Sellers might avoid making major home repairs by masking them from potential buyers with cosmetic or temporary fixes. Major systems are big budget busters for amateur property flippers. A roof, AC and pool repair can cost more than the entire rehab budget for shark investors. Whether you are looking for a move-in ready home or are looking to renovate, nightmare home money pits can ruin more than your day. Inspect properties carefully while viewing homes, and always hire a professional inspector before closing to avoid these:
- Lemon #1 Check the Air Conditioning. Systems can be charged constantly rather than replaced. Cores from stolen system can also be installed. The brand and installation dates should match both on the inside and outside units. When in doubt, pay an independent air conditioning professional to take a look or ask for a home warranty from the seller.
- Lemon #2 Up on the Roof. It is possible to make a 10-year old roof look almost brand new with some mold cleaner and a power washer. Some investors are only concerned about selling the home, and couldn’t care less about how long their “renovation” lasts.
- Lemon #3 Pool Decks and Surfaces. Pools can be great Florida fun or an expensive nightmare. The Carney Properties and Investment Group often hears of major leaks being patched over rather than having the whole pool reshot. Hidden leaks can be masked by simply refilling the pool before people see it. Also, beware of old river rock, and look for any cracking around the slab on the outside of the pool. A crack on the pool deck can easily progress and become a crack in the pool. Erosion around the slab is another potential issue that should be resolved.
- Lemon #4 Undisclosed Chinese Drywall remediation. It’s very expensive to remediate Chinese drywall. Carney doesn’t invest in it at all because the EPA doesn’t have final determinations on what a full “rehab” entails unless everything is replaced. Chinese Drywall damages almost everything. Every material that it doesn’t destroy becomes a sponge to emit the toxic fumes into other systems. The EPA calls for complete electrical and plumbing replacement as well as all major systems containing copper. Be warned, there are investors out there that replace the defective drywall, and instead of rewiring the home entirely, they cut and replace only the first six inches of wire on each outlet. The same pitfalls apply to the plumbing as well. One of our recent buyers shared his experience with undisclosed Chinese drywall remediation in a home he had inspected prior to coming to us. His home inspector pulled a wire all the way out to check it and discovered the previous damage.
Have you had a bad experience? What happened and how did you handle it? You’re welcome to share your thoughts in the comments below.
