How Do I Avoid Buying a Money Pit?

A house can look amazing on the outside and hide imperfections that can cripple you financially. Here’s what you need to know to keep from getting a lemon of a house.

Think Twice About That Fixer Upper

Got a couple million to spare and don’t mind spending years on renovating a house with “good bones?” Go for it. Otherwise, think hard about whether or not you can afford to sink all that time and effort into any home listed as a “fixer upper.” It turn into a money pit situation really fast!

Use an Eagle Eye on That Home Inspection  

Every single item on your home inspection report needs to be double and triple checked. Big ticket items you need to be sure are sound include the foundation, plumbing, electrical, roof, and HVAC system. Paying extra for a pest inspector can be well worth your time, and don’t forget to have the inspector spend extra time in any basement or crawl spaces checking for problems. 

Don’t Get Left Holding the Bag

Buying into an area that is slated for “gentrification” can bite you on the rear if you suddenly need to move in a few years. Trying to unload a house in a “bad neighborhood” can be difficult, and changing zoning can throw a wrench in your plans. Deployment, school plans, or a change in employment can all introduce extra factors so if there’s a possibility you’ll have to move sooner rather than later, don’t invest in a house you’ll have to sink money into before you can sell it.  

Mistakes can be made, but with this advice you can do your best to avoid buying a home that turns into a money pit unexpectedly.