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What are red flags when considering a home purchase?
Hi, I love the idea of a fixer-upper. All the home shows on HGTV have me thinking I can do this, but I'm also really worried that I'll get in over my head. What are red flags or deal breakers when buying a fixer-upper?
Asked By Amber N. | Grand Junction, CO | 1092 views | Buying | Updated 3 years ago
Answers (5)
Amanda Courtney
REP Realty Group
Common red flags include water damage, structural cracks, mold, strong odors, aging roofs, unsafe electrical systems, unpermitted additions, and very low HOA reserves in condos. Insurance issues can also be a warning sign. A professional inspection is always recommended.
- 2 months ago
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Brian DiMaggio
Atlanta Communities
Everyone has a different tolerance level and budget so this depends. I typically advise my clients to avoid situations with foundation issues, major termite damage, issues with neighboring properties, bad locations, mold or water damage.
- 3 years ago
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Jennifer Davidheiser
The Real Estate Professionals, Inc.
Additionally, the type of financing you are considering may factor in. If you are buying a property cash it is completely up to you. If you are financing your purchase, the type of loan you are utilizing may prevent you from buying certain “fixer uppers” based on their condition.
- 3 years ago
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Jeff Seman
Ironwood Fine Properties
Great question. With any home purchase through a Real Estate agent, you will be given a grace period for inspections. Even if the home is being sold "As Is" you should have a period to bring in a licensed inspector to inspect the property. The small cost (under $500) will give you all you need to know good and bad about the property. With this knowledge you can determine if the home is worth the "fixing up". When I do flips I look at 4 major things (roof condition, mold, termites, HVAC/furnace). If you decide not to move forward you can cancel during this period and get your earnest deposit back. The cost for the professional inspector is worth it to see what is behind the walls. Best of luck.
- 3 years ago
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Patrick Soukup
Soukup Real Estate Services
Great question. I’ve been buying and renovating homes since 2009 when I completed my first fix-and-flip, and over the years—especially working in the Fort Collins real estate market—I’ve learned that the best fixer-uppers are usually the simplest ones.
When I evaluate a potential fixer, I try to keep the renovation scope as “plain Jane” as possible. The projects that tend to make the most sense financially are cosmetic updates such as flooring, interior paint, countertops, cabinetry, tile surfaces in kitchens and bathrooms, and light fixtures. Those improvements can dramatically improve a home without getting into major construction.
Once you move beyond cosmetic work, the project can quickly become more complex and expensive. Things like moving walls, electrical updates, plumbing updates, HVAC replacement, or major layout changes can still make sense, but only if you have people you trust inspecting the property and helping you understand a realistic scope of work.
The issues I personally try to avoid whenever possible are structural problems, meth contamination (which unfortunately does show up in parts of Colorado), asbestos abatement, mold remediation, and environmental hazards. Those types of issues can open up a serious can of worms and turn a project into a major money pit.
Having someone experienced walk through a property and help identify potential issues can be incredibly valuable and can easily save tens of thousands of dollars. Fixer-uppers can absolutely be great opportunities—you just want to make sure you’re buying the right kind of project.
When I evaluate a potential fixer, I try to keep the renovation scope as “plain Jane” as possible. The projects that tend to make the most sense financially are cosmetic updates such as flooring, interior paint, countertops, cabinetry, tile surfaces in kitchens and bathrooms, and light fixtures. Those improvements can dramatically improve a home without getting into major construction.
Once you move beyond cosmetic work, the project can quickly become more complex and expensive. Things like moving walls, electrical updates, plumbing updates, HVAC replacement, or major layout changes can still make sense, but only if you have people you trust inspecting the property and helping you understand a realistic scope of work.
The issues I personally try to avoid whenever possible are structural problems, meth contamination (which unfortunately does show up in parts of Colorado), asbestos abatement, mold remediation, and environmental hazards. Those types of issues can open up a serious can of worms and turn a project into a major money pit.
Having someone experienced walk through a property and help identify potential issues can be incredibly valuable and can easily save tens of thousands of dollars. Fixer-uppers can absolutely be great opportunities—you just want to make sure you’re buying the right kind of project.
- 2 days ago
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- Unhelpful (0)
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