Most home buyers know what they consider deal breakers when it comes to things like price, location, size of home, and school district. But what happens when you find a house you really like and the red flags start popping up, particularly during inspections? Do you let go of a home that seems perfect for your family because of expensive fixes? Or do you hold onto it and plan how to deal with its flaws? Let’s review some common issues and categorize them according to their potential severity in terms of hassle and cost.
Probably Deal Breakers
Water damage. Signs of extensive water damage is a big red flag. If a house has suffered water damage in the basement, it could have serious drainage issues that can’t be solved with simple grading around the foundation. You may need experts to dig around the foundation and install drainage pipes—not a cheap undertaking. Water stains high on the walls and ceilings can indicate a leaking roof and possibly years of pipe damage. Take a close look at the property disclosure form to see what the seller has reported. Also, ask questions to help determine the causes of the damage. The seller may not always be forthcoming, but it’s worth trying to get more information.
Presence of asbestos. Asbestos is a serious health hazard. It’s a carcinogen found mainly in insulation of homes built before the early 1980s. It’s usually visible in attics, around plumbing and sometimes on duct work. The presence of asbestos does not automatically mean it needs to be removed. Materials made of asbestos that do not allow fibers to be airborne in any way are often left alone in homes. But any remodeling or changes made to a home could cause asbestos exposure, which would require professional removal that adheres to environmental standards. The cost to completely remove asbestos from walls, attic, roof, pipes, and flooring in a 1,500 square foot home could be as high as $20,000 to $30,000.
Foundation and structural issues. Wide or very long cracks, step pattern cracking, horizontal cracking, and vertical cracking are all likely signs of foundation issues. Minor exterior cracks can be repaired for several hundred dollars, but more serious foundation issues will cost in the tens of thousands. If you’re not sure how severe the problem, make sure you have a foundation expert inspect the home before you buy and provide an estimate of repair.
Buried oil tank. If you’ve learned there is an abandoned underground oil tank on the property or even one that has been removed, be careful. There are many potential environmental issues that could arise, including a health risk to the property owner. Removal of an oil tank or clean up of a removed tank can run into tens of thousands of dollars. Check with the seller and the county for recent documentation on testing and safety of this tank or its past removal if you aren’t scared away by its existence.
Amateur plumbing and electrical. A good home inspector should be able to spot amateur vs. professional plumbing and electrical wiring. Amateur plumbing could cause you major leaks that call for tearing through walls and ripping out pipes. Non-professional electrical leaves you with the uncertain potential of sparks and fire. Costs for plumbing replacement are anywhere from $2,000 to $15,000 (depending on home size and how many walls would need to be ripped open and repaired). Replacing electrical can range from $8,000 to $15,000 for a 1,500 to 3,000 square foot home.
Probably Flaws You Can Deal With
Older roof without leaks. Some buyers are scared off by older roofs because they can be very expensive to replace. A new roof made of asphalt shingles can cost anywhere from a few thousand to over $10,000, depending on house size, but usually lasts around 20 years. The cost could be much higher if using materials such as slate. If you love the house and it shows no signs of roof leakage, you might decide to start saving for a replacement or use the age to negotiate your purchase offer downward.
Ugly wall paper. Cosmetic changes are often the easiest to make. If you know a home’s space fits your style but you can’t get past the wall paper, remove it. It’s very possible to find do-it-yourself instructions and spend less than $50 per room to get rid of it. Sure, it takes some energy, but it’s low cost and certainly not a bad enough reason to say no to a home that otherwise has great potential.
Ugly or worn-out wall-to-wall carpeting. The cost to remove wall-to-wall carpeting is usually several hundred dollars. While costs can run the gamut on new flooring depending on your tastes, you can find the inexpensive to moderate range between $12 to $25 per square yard for material and installation. Because it can be affordably modified, bad carpeting alone should not scare you from a home.
Electric stove instead of gas. If you’re one to turn your nose up at electric stoves and there’s no current gas hook up available, this fix is fairly low cost. Ask the gas company how they would run a line into the home. The cost is usually around $300, plus whatever brand of gas stove you buy.
Window units instead of central air conditioning.
In today’s world, most homeowners require central air conditioning. Before you say no to a home based on its window units, consider your cost to add central air. As long as little to no new duct work is needed, you could have central air for $3,000 to $5,000 installed in two to three days. If the house fits your criteria in most other areas, this cost is well worth it.
Few houses are perfect in every way. Find out average repair or replacement costs to help decide whether a flaw is beyond your comfort level or well within your grasp. Your understanding and knowledge of the issue can mean the difference between a deal breaker and a keeper.