As a follow-up on my previous post on The Unexpected Costs of Building a New Home I wanted share what to watch out for when buying a used home. In the real estate business we call them "resale" homes. Unlike cars, homes don't usually lose their value over time, often times they gain value. How many of you have an old, distinguished area of town that is considered the ritzy neighborhood - these homes are often times 50+ years old and are expensive. There's absolutely nothing wrong with purchasing an older home but there are a few things to think about - age, condition, repairs, etc...
There are various reasons one might choose to purchase a resale home - to be closer to work or the price of used vs. new, maybe you want an established neighborhood with big trees or have your kids in a certain school district. There are plenty of incentives to purchasing a resale but there are always apprehensions associated with it as well. In particular a big concern are worries of how the previous owner maintained the home, how old are the expensive replaceable mechanisms are and costs associated with updating an older home. All of which are valid concerns.
There are various reasons one might choose to purchase a resale home - to be closer to work or the price of used vs. new, maybe you want an established neighborhood with big trees or have your kids in a certain school district. There are plenty of incentives to purchasing a resale but there are always apprehensions associated with it as well. In particular a big concern are worries of how the previous owner maintained the home, how old are the expensive replaceable mechanisms are and costs associated with updating an older home. All of which are valid concerns.
I ALWAYS recommend a professional home inspection! Even on a brand new home but more importantly on a resale! Years ago I represented a buyer on a new home build. During the inspection we discovered the heater was installed incorrectly and would have been pumping poisonous gas into her home. Had we not had an independent inspection performed it could have been devastating.
It's even more important on a resale home. You want to know what you are getting yourself into no matter the age or condition ALWAYS get your home inspected!
It's even more important on a resale home. You want to know what you are getting yourself into no matter the age or condition ALWAYS get your home inspected!
What to watch out for:
How old is the roof? The average lifespan on a roof is 20-25 years ($8-10k on 1500 sq ft house)
Water heater – 12 yrs ($1k)
HVAC (A/C & Heater) – 15 yrs ($5-9k)
Dishwasher – 10 yrs ($500)
Windows – 25 yrs ($200 each)
Foundation
Electrical
Plumbing
Safety concerns (should always be addressed)
A professional inspection report will list out a multitude of issues, you don't need to be overwhelmed by the report, just educated. If you have a hard working Realtor negotiating on your behalf you should have peace of mind in knowing he/she will negotiate to make sure your concerns are addressed.
Water heater – 12 yrs ($1k)
HVAC (A/C & Heater) – 15 yrs ($5-9k)
Dishwasher – 10 yrs ($500)
Windows – 25 yrs ($200 each)
Foundation
Electrical
Plumbing
Safety concerns (should always be addressed)
A professional inspection report will list out a multitude of issues, you don't need to be overwhelmed by the report, just educated. If you have a hard working Realtor negotiating on your behalf you should have peace of mind in knowing he/she will negotiate to make sure your concerns are addressed.
The nice thing about the Texas resale contract is we have what’s called an Option Period. For a minimal amount of money, usually $100, you have a 7-14 day period to do your inspections and if you aren't satisfied you can terminate the contract and your earnest money will be refunded. It's the prefect opportunity to have your agent renegotiate and ask the seller to perform some of the repairs or offer a credit at closing so you are satisfied. The nice thing about resale is everything is negotiable and you want an experienced agent on your side fighting for your best interests!
A home warranty is a good idea to cover most appliances, plumbing and electrical for the first year – they really aren't all they are cracked up to be but they will save you money should something come up. This is typically a benefit I provide for all of my clients.
A home warranty is a good idea to cover most appliances, plumbing and electrical for the first year – they really aren't all they are cracked up to be but they will save you money should something come up. This is typically a benefit I provide for all of my clients.
I hope this information was helpful. Keep an eye out for my upcoming blog series on Negotiating Repairs from both the buyer's and seller's perspective.
I am a RE/MAX agent in N. Texas. If you are thinking of buying or selling a home and want an experienced agent that will fight for you give me a call. I have 20 years experience in the real estate industry and love the art of negotiation. Give me a call if I can help with your real estate needs.
Deanna Parnell
RE/MAX Heritage
469-258-4770
Serving the DFW, Fort Worth, Keller, Southlake, Colleyville, Saginaw, Haslet, Watauga, North Richland Hills, Roanoke, Trophy Club, Alliance and Heritage areas.
I am a RE/MAX agent in N. Texas. If you are thinking of buying or selling a home and want an experienced agent that will fight for you give me a call. I have 20 years experience in the real estate industry and love the art of negotiation. Give me a call if I can help with your real estate needs.
Deanna Parnell
RE/MAX Heritage
469-258-4770
Serving the DFW, Fort Worth, Keller, Southlake, Colleyville, Saginaw, Haslet, Watauga, North Richland Hills, Roanoke, Trophy Club, Alliance and Heritage areas.