Here are a few major points to consider before you buy a fixer-upper.
Time had stopped in a house we toured last week.
The in-house speaker system was original and installed in 1958. All the bathrooms had original tile, sinks, and tubs. The kitchen had original cabinets and only the refrigerator had been replaced. The basement had asbestos tiles on the floor and a swingin' Rat Pack style bar that took up an entire wall.
How much do you think it would cost to fix this place up?
Many home buyers love the character, craftsmanship, and detail found in an older home. But before you buy a fixer-upper, seriously consider the following questions.
What projects can you do yourself? Is the house built prior to 1978? Do it yourself projects can quickly grow and take up more time than you planned. If the house is built prior to 1978, it's likely lead-based paint is on the walls, window trim, and doors. If you're removing walls or making any major changes on an older home, you'll need to hire professionals to do the work. Lead paint and asbestos removal is not cheap!According to Home Advisor, it can cost between $200 and $700 to hire professionals to do this type of work.
Will the house need an electrical heavy up and updating for outlets & switches? Most houses today include a 200 amp electrical service. This allows homeowners to run as many circuits as needed. Older homes may have only 100 amp service which is often not enough electricity for homeowners needs today. A licensed electrician should be hired to do a heavy up which usually costs between $1500-$2500. If you're handy, you may be able to replace old outlets with GFI protected outlets but this work takes skill and you'll want to be sure to turn off the main power before doing any electrical work.
What is the condition of the roof, structure & foundation? Depending on the size and condition, roof replacement can be expensive. If the roof is near the end of it's useful life, adjust your offer to reflect the cost of replacement. If there are foundation issues, seriously consider walking away! To avoid buying a house with foundation problems, spend time examining the exterior and interior walls. Last spring, we found large, jagged cracks along the brick foundation of an older home. In the basement of the home, the wall bulged from the cracks in the wall. This is an expensive problem! If you have any questions about the foundation of a property, hire a structural engineer.
Give serious consideration before you waive a home inspection. With the exception of an almost new condominium, we have never advised our buyers to waive a home inspection. We have, in competitive situations, done a pre-offer home inspection. This is done when there are multiple offers on a property and you want to write a contract offer that is not contingent on the home inspection.