5 Ways To Avoid Buying A Saratoga Money Pit
Some people love to do repairs. They’re good with their hands, and they like to fix up old homes that need a little extra TLC. But even if you’re the handiest person in the world, some homes will need more repairs than you may be willing to do or afford. Most people usually buy a Saratoga money pit thinking they’re getting a good deal, but when they find out the extent of the repairs that need to be done, they end up paying way more than the house was ever worth. Don’t get sucked into buying a Saratoga money pit.
Below are five easy ways to avoid buying a Saratoga money pit.
Go to Inspections Yourself
Whenever you’re having a home inspected, make sure that you are present. This is the first time you’ll really get to see your new home up close and personal so you can see what you’re working with. Your inspector will be able to show you any problems he or she sees as well as where potential problems may arise. This will give you an idea of how much you may spend in repairs once you buy the Saratoga house.
Your home inspector should also be from a third-party course. This means the inspector will be unbiased. He or she isn’t trying to help the buyer make a deal. The only things that go on the report is what the inspector sees.
Analyze All Disclosures and Reports on the House
Your seller is required to provide you with a disclosure of the property after the offer is accepted. The disclosure lists everything the owners know about the property, including any problems or issues with the neighborhood.
If you see any repairs that the seller did without a permit, check these repairs immediately. If the work is shoddy, then you’ll have to make the repairs to bring the work up to code. Depending on how much this costs, you may be able to convince the seller to lower the price.
The inspection should give a detailed report about any issues or repairs you should know about. It will also give you an estimate of how much the work will cost you. Knowing this can help you renegotiate a price, especially if you know you will have to spend thousands of dollars in repairs.
Get Estimates from Multiple Contractors
Once you have an idea of what needs to be fixed from the inspection, take your inspection to a few different contractors and get their estimates as to how much the repairs will cost. Even if you plan on doing the repairs yourself, the estimates will help you leverage a better price for the Saratoga house.
This will also open your eyes to the amount of work that really needs to be done. If you thought you only needed a little work done, speaking with a contractor can help you see how long repairs will take and how much will need to be done. If the home is going to cost you more than it’s worth, it’s time to back out of the deal.
Don’t Plan on DIY
Unless you’re a contractor yourself, don’t plan on doing most of these repairs yourself. Some buyers rationalize the costs away because they think they’ll do the work themselves. While little repairs are okay, bigger ones take time and a lot of energy.
Getting estimates from professionals will help you see the big picture. You’ll have an idea how much time and work will need to be done. This should help you put your DIY dreams into perspective. If you’re not willing to commit the time and energy, then don’t buy the home.
Push for Credits and Price Reductions
Now armed with all this knowledge as to what fixing the home will actually cost, it’s time to return to the seller and ask for a price reduction or other credits to offset the cost of the repairs. If you aren’t too certain on your price, talk it over with your realtor to decide what is fair for both the buyer and seller.
Sellers usually aren’t too concerned with the repairs that need to be done, so it’s in your better interest to push for costs to be reduced. Offer either a price reduction or a closing credit cost to make up for the repair costs.
Buying a Saratoga money pit can cost you way more than you ever anticipated. Before buying, thoroughly research the prospective home and get as much insight into its condition as possible.