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While renting offers flexibility and fewer responsibilities, many still dream of purchasing a property to call their own. New constructions can be prohibitively expensive, so you may choose to buy a pre-existing home that can last for many years to come.
However, there are additional considerations you must take into mind with an older property that may not have occurred to you as a renter. Today, we’ll outline what you need to know about buying an older home that will hopefully inspire you as you save up for that perfect property.
Insist on an Inspection
Most states, including Texas and Kansas, do not require home inspections, but your mortgage company may require them before approving a loan. Appraisals are also necessary if you get federal loans, such as FHA, VA, or USDA loans.
Even if the home inspection isn’t mandatory, you should always insist on getting a home inspection from a licensed inspector to ensure that there are not any serious issues, like foundation damage, water damage, insect infestations, or bad wiring. This can save you thousands of dollars while also providing you with a list of potential problems you’ll need to keep an eye on down the line.
Look at a Home’s Potential and Livability
It’s easy to get lost in looking for the perfect home so that you don’t see the one that’s right in front of you, waiting for a bit of TLC to reach its full potential. The truth is that no pre-existing home is going to match your vision exactly, but homes can be altered and customized over time to meet your needs better.
The primary objective is to find a home with “solid bones” and no major issues that were revealed in an inspection. Later on, you can seek the help of professionals who will help customize the home to your specifications.
It’s important to work with a local company that has the necessary credentials and experience for your area. For exterior remodeling, Kansas City homeowners should work with a company licensed and insured in Kansas and Missouri, while Dallas homeowners should work with a Texan company. These companies will also be able to provide closer oversight of the process than a large multinational corporation.
Ask the Sellers for Repair History and Warranty Information
In most cases, the home will come with appliances that may still have warranties. If possible, ask the sellers to provide the documentation for these appliances so that you can make warranty calls if necessary.
If the home’s roof, siding, flooring, or windows have been replaced recently, ask for the paperwork. This can make it much easier to match the models if you need to replace a shingle or rip up a specific floorboard. However, don’t worry if the previous homeowners don’t have this information. A good contractor will be able to match the colors as closely as possible.
Change All the Locks and Passwords
Moving into your brand new home is a delightful experience, and it’s easy to get caught up in the excitement without worrying about your safety. However, you must change all the locks and any security passwords as soon as possible. Though the previous homeowners may be moving far away and have no reason to harass you, many other people may still have keys to that address, such as old petsitters, babysitters, friends, and even vengeful exes. If the home has a security system, others may also have old passwords that they may use to gain access.
Rekeying by a locksmith costs only a few hundred dollars and can be completed in an afternoon, but it will provide you endless peace of mind.
Keep Money in Reserve for Home Repairs
Many new homeowners focus entirely on getting the down payment and closing costs covered without considering what will happen after they take the keys. However, issues like bad plumbing, missing roof shingles, and damaged siding can happen at any time and lead to thousands of dollars in repairs. Failing to take care of an issue can just make it worse over time, so you need to act quickly if you notice issues with your home.
While there’s no hard and fast rule to how much you should have in reserve, putting aside about 5% of your paycheck every month can add up quickly. You could also consider having a dedicated credit card for home expenses, as this will add some cushion if you get hit with a huge bill that your savings account does not cover. Of course, always make sure your homeowner's insurance is current, as this can help if unexpected bills crop up that weren’t due to general disrepair.
Owning a home is a big responsibility, but it also affords you independence and helps you save up for a happier future. If you’ve decided to purchase a pre-existing property, keep these considerations in mind, and happy house hunting.
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