Ways to make sure your new home is not "The Money Pit"

 Grant Trevithick here. Today I want to give you some pointers to make sure the home you just bought is not a "Money Pit".

Almost 30 years ago Tom Hanks and Shelly Long made an entertaining comedy called "The Money Pit". It was one of the very few movies based on real estate. No specific spoilers here, just know that challenge after challenge after challenge after challenge happened after the purchase. I will tell you, that like most movies made in the 80"s, it did have a happy ending. 

Here's a few things to look for to make sure you don't go through what they did...

Not everybody wants a swimming pool, but if you do, it doesn't cost much to make sure the one that is with the home you are considering is in good shape and clean. Fixes on the backside can add up quickly so make sure to have a pool company take a quick look for concerns. Another hint about doing this is that you will probably want a pool company to do some regular upkeep on the pool...just mention that if they will inspect they can be your pool company and the inspection may come at a reduced cost or even free!

Before you get inside your home there's one other area to double check. The foundation. If you are purchasing your first home you probably don't already know that almost EVERY house in Texas has some movement through soil erosion. Just a fact of life. Because of this most homes have some level of cracks in the foundation, either large or small. The first suggestion is not to panic, most of those cracks will not lead to any future challenge. They happened long ago and all is well. However, if you see widened cracks, or you notice that some of the doors and windows inside don't operate smoothly, a poor foundation could be the culprit. There are plenty of companies that can give you an assessment of the challenge and the cost to take care of it. The original owner probably knows of the problem and will prepared to help with any costs to take care of it.

If the property is an older one take a quick look at the electrical panel. If the panel is older check with the electric company that services the area and make sure that the panel itself is a safe one. Some panels have been put on a list of fire hazards and you of course don't want that. Also make sure that the electric use is not overloaded. If there is something on the property like a hot tub that pulls a great deal of power make sure the panel is set with plenty of amps to not challenge the system. 

One other very boring fact is that there have been a number of "new rules" regarding the water heater in the home. Because of this if the home is over 8 years old it's possible the current water heater was not put in following these new guidelines. That will not be a problem...until you need to replace the current unit. Some of the newer rules are fairly costly to follow so if the hot water heater looks to be on it's last legs discuss how those costs are imminent and see if the current owner can help.

Air conditioning in some form is almost a mandated part of any home in Texas. It's easy to take a look and see if the unit, if central, is older meaning it will use older additives to operate properly. Make sure you can still access them at the local hardware store. There will be labels on any unit that will give you a good idea of how often upkeep or repair has taken place. These units can last a long time when taken care of properly. Just make sure you new house if going to be a cool one. 

There are a few other "mechanicals" that you should be taking a quick look at. Do all of the build in appliances in the homework properly? If there is a garage does the door work smoothly? If a power door, is everything in working order? Hidden under your new yard there might be a great sprinkling system. Make sure it works. This can be another costly repair if there is a disconnect down there somewhere.   

If there are just a couple of items that stick out to you as a concern it may be best to have a conversation with the seller and see how the two of you can come to terms to make it right for all. If there looks to possible be a number of things have a home inspection done, sure, try to get the seller to pay for it, but if you like this property it's worth it to you to get it done even at your own cost. Once you have the information either confirming a challenge or indicating that concern you had was unfounded figure out how to buy your new home. 

One note...be fair in all of these things. Over time every home will need updates and replacements of items don't expect the current owners to help you pay for those future activities. Only look for help if the challenge is imminent. Both you and the seller will leave the table happy. 

Grant Trevithick is a Real Estate Investor who works with families all through Addison, Carrollton, Dallas, and Fort Worth. Learn more about the owner investor strategy and how you can start to apply it to your life by visiting https://ownerfinanceacademy.com/