Why You Should Think Twice Before Buying A Recently Renovated Home
A recently renovated home might look great cosmetically, but there could be hidden costs like plumbing or electrical issues that are not initially apparent; hence it's always best to do your research and hire a home inspector that will go the extra mile.
Buying an older, renovated home is in vogue. Midcentury Modern is in (link 1950s and 1960s); retro is cool (think 1970s and 1980s), and most importantly, reusing and repurposing is a necessity now. And, if you are lucky enough to buy a home from anywhere between the 1800s to the 1940s, you’re in luck and can indulge in fun details that today’s homes do not have. But, if you’re a new homebuyer, you have to go in with eyes wide open.
According to a blog post on Cubby, the author was duped into purchasing a renovated or “flipped” home that appealed to her heart when she should’ve been thinking with her head. Flipped homes are ones where a contractor or designer, or a combo of the two, purchased a home and gave it new life. However, some flippers cut corners just to turn a profit, some don’t have the proper know-how, and some don’t understand if a home has good bones or not (meaning, should it even be remodeled?).
At times, fervent buyers will let their hearts guide them instead of their minds. They let themselves get swept away by the romance of the time and place of the antique home. Many times with an older, renovated home, you need to have experts on your side and you need to be able to handle the hard truth of hearing, “this is going to cost you too much money.”
Here are three things you absolutely need to do when purchasing a renovated home.
- Find an inspector who goes beyond the surface level. Meaning looking at work that can’t be rectified with a trip or two to your local Home Depot. You can either find and hire an inspector familiar with old, renovated homes or if you can’t find an expert, find an inspector who will look at things like electrical, HVAC, roofing, and plumbing. These are all items that are among the first to age and are costly, so they don’t get repaired, unfortunately. If you have to pay more money for a specialized inspector, it’s worth the investment. They tell you the truth and will navigate the journey with tempered expectations with you.
- Do Research on the Developer or Renovator (Flipper). Find out from the realtor if you can find the history of the company that did work on the renovated home. Do not be afraid to ask questions, get names and numbers of folks who are living in some of the company’s renovated homes, and get references. Proud flippers or renovators should have this info handy. You’ll want to see photos and not just the glossy MLS ones. Ask for before and afters. Doing research will help you when you choose to finance your loan or negotiate with sellers.
- Always have extra funds on hand. When you purchase an older, renovated home, no matter how it appears on the surface level, things will and do go wrong. One strategy homebuyers are employing is getting a high-risk loan or an ARM. This is where you are locked in on a lower interest rate, but will be adjusted in 5 or 10 years. Those rates could be astronomical. No one can foresee the future.
Old plumbing will become an issue, the heating will go out, the roof will leak, and there may be ghosts. (Just kidding on the last one … maybe). But the point is, your new much-loved home is old. It has old bones, and they tend to have issues with age. A warranty will help with your HVAC and roofing but read the fine print carefully. And ghosts, you’ll just have to learn to live with ‘em.
