Purchasing a home is a really exciting adventure, but there are some potential problems that you need to look out for. The last thing you want is to purchase what you think is your dream home, only to find out later that you are going to have to sink thousands more dollars into maintaining or fixing it. Some houses appear perfect, but are actually potential money pits, so there are certain things you need to look out for. If you’re lucky, a good real estate agent will alert you to problems that they detect, but they might not see all of the issues. You will need to take specific steps, and pay attention to certain issues particularly carefully, if you want to do your best to avoid buying a home that you might regret later. Here are five steps you can take to avoid buying a money pit home.
1. Consider the neighborhood
Most people think of a money pit home as one that needs a lot of work. However, you can find a perfect home, with no material or other defects, and still have it be a money pit. Regardless of how nice the house itself is, if it’s in a bad area, you risk losing value or having a hard time when you want to resell it. You can usually fix a house that has problems, but you can’t change a neighborhood. If you are comfortable and confident that you want to live in a certain area, even if it is considered a less desirable one and you plan to stay in your home for a while, then you are probably all set.
However, if you only plan to live in your home for a few years or you are unsure of how long you will stay, you should look for a desirable neighborhood. Some of the issues to look out for include an unkempt yard, being too close to a sex offender, or being too close to some types of commercial buildings.