Tips for Dealing with Home Repairs When Buying Real Estate
Buying a home is a huge decision, and the process has a lot of moving parts. One of the areas that can bring the purchase to a halt is the issue of home repairs. Before you start looking at houses, here’s what you need to know about managing that situation.
Assess Your Real Estate Contract
A real estate contract is a legally binding document between the seller and buyer with regard to the house. It’s recommended that you get a real estate attorney to go through the contract thoroughly. According to the Balance, this contract will contain information pertaining to appraisals, closing costs, and contingencies. One of the contingencies to pay attention to is the home inspection contingency, which may also be called the due diligence contingency. It usually specifies a time period within which you’ll need to have the home inspected, and some sellers may also set a limit on the amount they’ll spend on repairs to the property.
Home Inspection Details
Since home inspections are such an important part of the decision-making process, it’s helpful to follow the advice offered by Consumer Reports. You’ll need to ensure that the home inspector you’re working with is certified and aware of the requirements for doing a home inspection. Home inspectors are not strictly required to check swimming pools, water treatment systems, or solar heating systems, so it’s in your best interest to know the areas that are part of a standard home inspection. These include the roof, stairways, the basement, crawlspaces, and plumbing, as well as furnace and air conditioning systems.
You’ll definitely want to pay special attention when it comes to properties that are being sold as-is. It’s important for the seller to identify the issues before you purchase the property, which could include defects like structural problems, mold or mildew issues, a faulty roof, or termite damage. In this case, you should be prepared to set aside a budget for repairs, as the seller may not be interested in fixing anything.
After the Home Inspection Report
Once an inspection has been completed, the inspector will prepare a report that will be submitted to the seller, as well as to yourself. The report will clearly state any issues that were noted and you’ll have to determine who should bear the financial responsibility of the repairs. Unless the seller had claimed responsibility for certain repairs in the contract, they are only responsible for fixing what the state requires. In some states, the seller must fix any issues that could have an adverse effect on the buyer’s health, so it’s important to know the regulations.
If the repairs are not covered, then you have the option to negotiate with the seller. Structure Tech offers advice on negotiating home repairs. Instead of nitpicking on things like peeling paint, you should focus on major items such as faulty wiring and outdated plumbing. You also have the option of asking the seller to have the repairs done before you move in, or you can hire professionals to do the repairs for you. Either way, you and the seller must come to an agreement for the sale to move forward.
Determining the Costs of Home Repairs
Regardless of the agreement you’ve managed to reach with the seller, it’s good to know what home repairs generally cost so you can budget accordingly. Take replacing a furnace, for example. Depending on the type of unit, brand and installation particulars, costs to replace a furnace typically range between $1,795 to $6,290. Of course, this number can be higher or lower depending on numerous factors. Ideally, you’ll want to consult with several HVAC professionals to get a handful of quotes, and the right contractor will guide you toward the best system for your house size and budget. Regardless of which system or major repair a home needs, you’ll want to have a budget in mind for potential repairs when looking at houses.
Additions Made After Moving In
If you’ve decided that the home is right for you, regardless of the necessary repairs, you can then budget for renovations or additions to make the home more tailored to your needs. These can also be useful should you plan on reselling the home in the future. Even something as simple as installing a patio cover can increase the home value and make the property look more attractive. With Alumawood Patio Cover Kits, you can easily install a patio cover that looks like real wood with less maintenance required than an actual wood cover.
When it comes to dealing with repairs as a homebuyer, try to remain objective throughout the process. It wouldn’t make sense to settle in a home that can’t meet your basic needs or that becomes a money pit. With a cautious approach, you can find a home that you can easily turn into the house of your dreams.
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