You’re about to discover what most people will never know about the 10 hidden dangers that lurk behind fixer uppers and how to avoid them! These surprises can cost you tens of thousands in extra costs and perhaps most troubling, most of these things are not reported in home inspections.
10 Surprises Avoid When Buying Fixer Uppers
When you’re looking to buy a property, we always recommend you get a professional home inspection. Even if you’re a contractor or handyman yourself, an inspector will be very thorough and utilize testing equipment that you likely don’t have. This will ensure that you know as much as possible about what’s going on above, underneath, and behind the walls of the house. However, there are additional dangers that you need to be looking for that you’re not likely to find on your inspection report. If you’re considering buying a fixer upper, the advice I am about to share could save you a fortune.
1. Neighborhood
The first is regarding the neighborhood. You may already be familiar with the area you’re buying in, but have you dug into the crime reports by searching online or contacting the local police department? You should be familiar with those stats, and all the others regarding your area, including searching your states sex offender database. Some sites that compile this and other data are:
- HomeFacts.com
- BestPlaces.net
- City-Data.com
You also want to make multiple visits the property at different times, especially at night and on the weekends. Meet the neighbors and learn all you can for more insight. You want to learn about any loud house parties, the nearby train schedule, and any other surprises BEFORE you make your purchase! And of course, you’ll get information on any Homeowner’s Association (HOA) rules and requirements as well. Check out Phil’s training for the best protection, the Ultimate Buyers Guide to Property Associations.
2. Plumbing
Your inspection will of course include all the plumbing for the property. However, if you have a septic tank or well water system, you’ll want separate inspections for those. Well water should be tested to make sure it’s safe, and you want to be sure you understand the age and type of your septic, when it was last cleaned, the location and condition of the lateral lines in the leach field, and that the system is sized properly for your house. Those are costly systems to repair or replace.
And if your property was built prior to the 1980’s you’re wise to scope the main drain for the property, whether to the city sewer or the septic system. They’ll run a camera down the line to identify the type of line you have and identify any damages; from breaks or collapsing in the pipe, to roots growing into the lines. You’ll also get clarity on the depth of the pipe and where it’s run, especially if it goes outside your property’s boundaries. If you have dated lines, like old cast iron or clay pipes, it can cost you thousands to dig up and replace. Not what you want to be surprised on with a fixer upper.
3. Electrical
Your inspection should also include your electrical system and the inspector will point out any issues. But additionally, you want to consider the size of the electrical service and if it’s coming in aerial or underground. If it’s aerial, watch for trees that could cause problems when storms come through. Also consider your panel capacity if you plan to do any upgrades or add a tankless water heater. Those may require 75amps, and you really want a 200A service to accommodate modern needs.
4. HVAC
Another common inspection piece is your HVAC: heating, ventilation, and air conditioning. While you’ll learn how well the system is working overall, what you may want to inspect ducting. Your inspector will visually inspect it in the attic or underneath, but your concern should be on the inside of the ducts. If the house was previously smoked in or many candles were regularly burned, you may have build up in the ducting that should be cleaned for better indoor air quality.
Another problem is sizing. Failure to accurately calculate the required load, or just skimping to save a few bucks, can cause problems. If the wrong size supply or return ducting is put in, or if ducts aren’t properly insulated and sealed, it can cause condensation and promote the formation of mold. That can be very detrimental to your health, so don’t skip this one.
5. Walls
Your interior and exterior walls should be straightforward. They should be in good condition, properly sealed and correctly insulated. But to avoid surprises you also want to be aware of issues like the presence of lead-based paint if the property was built prior to 1978. Likewise, until the 1970’s asbestos building materials were used in roofing, insulation, plumbing, and flooring. And while your seller may be required to disclose these, they may not be aware themselves, and these can certainly pose serious health risks and are very costly to remediate. Another concern is Chinese drywall. If the property was built in the Southeast United States between 2001 and 2009, you also want to check for the use of Chinese drywall that can emit sulfurous gases. Looking for copper corrosion can be a good way to identify concerns.
6. Foundation
A major consideration with any property is of course the foundation. Besides the obvious checks for shifting and cracks, you want to really look for soil erosion and water drainage. Erosion is a problem that will grow with time, depending on your location and elevations. But water drainage can be a huge problem, especially if you aren’t buying around the rainy season and able to size up the impact. Visit the property when it’s raining, if at all possible, but talk with neighbors and others that know the area well.
Another growing concern depending on where you’re located are Sinkholes. These can be small and little cause for concern, or they can quite literally consume you! Check the US Geological Survey Risk Map to be sure. And when it comes to foundations and some of the surprises we’ve covered, check out Phil’s video as well: 7 Things to Inspect when Buying a House
7. Insurance
The possibility of sinkholes brings us to another great way to avoid surprises, and that’s regarding insurance. You’ll of course be getting a quote for new coverage, but early on in your diligence you should inquire from the seller about any previous claims they have made or know about previously for the property. And there’s a National Database that your insurance agent can check as well; you want that information.
We had an apprentice take over on a property Subject To and found out later when his new buyer was having trouble getting insurance that there had been a sinkhole claim made. However, with some digging, he obtained the foundation repair info, and most importantly the engineer’s report and that satisfied the concerns. But short of that, you can see how this could be a very costly surprise.
8. Underground
And that brings us to more concerns underground. Again, depending on the part of the US you’re in, radon levels have to be checked to ensure safe levels. If you purchased directly and with fewer requirements, you may have skipped that test, but a future buyer likely won’t. That will likely be a couple thousand to mitigate, so be sure to check the EPA’s Map of Radon Zones before you buy.
Another costly underground surprise can be oil tanks. These were very commonly used for heating fuel starting in the 1930’s and up to the 1980’s. Some states require removal or decommission of tanks, and some banks won’t lend without that completed, which could be from several hundred to several thousand dollars depending on the size and location. A ground penetrating radar (GPR) survey will cost several hundred, but the biggest surprise is if there is any tank leakage and soil contamination. That can be thousands more and may not be covered by insurance. So again, know what’s going on underground before you buy!
9. Municipality
Some of the biggest surprises to avoid with fixer uppers will come from your local municipality: the city, town, village, or county where the property is located. You want to be aware of any ordinances, such as those for oil tank removal, or requirements to move from septic to sewer, and the associated fees. You can check with your municipality for more information, and while you’re there, check with the zoning department to be clear on the designation and allowances for your property. Also, see if anything about your property may not have been permitted, or if there are any remaining open permits that need to be resolved before you close. Buying property can involve enough headaches without more from the local government.
10. Survey
The final surprise to avoid will show up on a survey. You always want one to make sure you’re aware of any encroachments or easements. Encroachments are any part of a structure that may extend beyond or onto your property’s boundary. A survey will make this clear and confirm who has ownership of any fencing around the perimeter. It should also show easements, also known as rights-of-way, that allow someone else, like a neighbor, a public utility, the HOA, or the local municipality some specific type of access through your property. A shared driveway is a common example.
We have an apprentice right now trying to work with a property where the seller has shared a driveway with the neighbor for over a decade. Well, the neighbor is the seller’s brother, and he’s not interested in granting an easement to a new buyer, which has become a costly problem. So part of the purchase has to consider either the legal fees to fight for access in court, or otherwise the cost to engineer and install a new access. Again, surprises you don’t want to find out about AFTER you buy!
Don’t Waste Time Making Costly Mistakes!
So, if you’re about to take on a fixer upper, make sure you investigate each and every one of these to ensure you avoid costly surprises. You don’t want to take on a nightmare property and find yourself in a money pit. We’ve worked on thousands of house flips and learned (sometimes the hard way) to spy these surprises out before the purchase. It’s part of how we help our apprentices successfully flip houses for big profits. That’s what we do at Freedom Mentor! We mentor and coach people into world class house flipping professionals.
Every Successful House Flipper Has a Mentor
If you want the very best in your corner, helping you every step of the way, consider applying to our Apprentice Program where myself, Phil, Devin, and the rest of our team will guide and train you through this incredibly profitable endeavor of flipping houses. Text FREEDOM to 305-315-8030 or apply to our Apprentice Program here: Freedom Mentor Apprentice Program.
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