Buying a Fixer-Upper House

In general, new homes and those in move-in condition are ideal for most buyers. However, some buyers are finding that a well-done remodeling job can save them a lot of money.

Fixer-uppers are getting attention because:

Here are some things to keep in mind to identify the fixer-uppers that are worth your time and money:

Think thoroughly what you are getting in to – Bring an analytical eye when shopping for a home to renovate. Put your emotions in the back seat while you assess each home’s possibilities.

The floor plan – Look for a floor plan you can live with. Moving load-bearing walls is an expensive proposition and should generally be avoided.

Start with the crawl space or basement – Inspect a home thoroughly, inside and out. Check inside and outside the basement or foundation for exposed wires and water pipes, cracks in the foundation or water pooling around the home.

The biggest problems in a house typically arise as a result of poor stability in the structure or foundation.

The roof – A roof inspection is a must. You should get a home inspector or trusted roofing specialist to inspect the roof and tell you its condition and if the home needs a new roof. A new roof can be very expensive and can cost in the range of $15,000 to $30,000 and up depending on the size of the house.

Runaway water can wreak havoc on any home, and a leaky roof is its quickest way in. If the home has an asphalt roof, look for cracked, curled and missing shingles. Gutters, downspouts and leader pipes should also be in place to collect rainwater and channel it away from the house.

Scrutinize bathrooms – Bathrooms deserve special attention because leaks cause rot and structural damage.

Avoid old plumbing and wiring – The presence of these older building materials is a sign of trouble:

• Galvanized steel pipes: Sediment can build up in the pipes, and they may leak and corrode.
• Aluminum wiring: It’s a potential fire hazard.

Replacing a home’s plumbing and wiring are budget-killers involving thousands — if not tens of thousands — of dollars.

Back away from funky smells – Odd smells could be a sign of problems. A home that emits bad smells may have a dangerous gas leak, sewer or septic problems, or mold — all of which require expensive remedies. Save your money for improvements you can enjoy.

Musty and dank smells come from mildew or mold. Mold is not always visible and may be inside walls. Don’t assume you won’t find mold in a dry, arid climate. It can be caused by condensation inside walls.

Watch for rot – Rotting wood is another red flag. Use a pencil to push on trim and the wood around windows and look for soft or crumbling wood.

Inspect drywall and floors – Keep an eye out for flooring or drywall that is:

• Stained
• Uneven
• Warped
• Discolored
• Peeling

These can indicate rot or mold.

Run away from bad siding – Deteriorating siding raises a red flag for two reasons:

• It’s expensive to replace. Depending on the material you choose, new siding can start at $10,000 to $13,000. Costs increase with the size and complexity of the job.
• It may indicate other problems. Siding may be rotting, blistering or disintegrating because of rot or mold hiding behind the home’s exterior.
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Beware leaky windows – If you want to replace old windows with new, energy-efficient ones, that’s a great idea. However, be careful of committing to a home with leaking windows. Water seeping into a home through window leaks can cause untold and unseen problems from rot and mold. You can’t tell how bad the problems are without removing the windows.

Spot a bad location – Become an expert on the neighborhood. Bargain homes are often in less desirable areas. Knock on doors on the street and chat with neighbors about crime. Your job is to assess how bad a neighborhood is and whether it’s really going to turn around.

Even if you don’t have children in school, your home’s next buyer might. Therefore, learn about the quality of local schools. Get neighborhood crime statistics from the police. Assess the home’s proximity to jobs, stores, banks, cafes, restaurants and playgrounds.

Look for pests – You’ll need an expert to tell for sure if a pest infestation is present. But you can spot some telltale signs, including:

• Insect wings left on sills (a sign of termites)
• Teeny sawdust piles along baseboards (carpenter ants)
• Urine stains, odors or scrabbling sounds (rodents)