Florida’s housing market is one of the best places on United States to invest.
However, this doesn’t mean the properties sold here are perfect. Nor does it mean buying houses is easily affordable.
In incredibly rare cases, maybe it is. So we are easily driven by pressure to purchase given its dubious affordability…
But wait— don’t reach for that wallet just yet!
Some things can only be too good to be true. Looks can be deceiving; and it’s also particularly common for house-buyers.
Of course, there are some details you should overlook such as a bad paint job or worn out door knobs. But you need to be sensitive on other crucial factors that may affect its overall quality.
There’s no sense in purchasing an “affordable” home when its every corner is in dire need of repairs. The bill will only pile up greater than your initial budget.
Some states– Florida included, are under the required selling disclosure form. This form compels every seller to publicize (if any) issues about the property to all prospect buyers. See Florida House-Buying Disclosure Form here.
We strongly recommend not to rely so easily on passed information and see the property faults yourself.
Remember these five home buying deal breakers before depositing cash on your next prospect home (may it be within or outside the state of Florida).
5 Deal Breakers All House-Buyers Should Know
1. The Roof
Prospect Repair Cost: $10,000 – $30,000
Let’s begin at the top: The Roof.
Poor installation of frames and tiling can cost you as much as completely replacing the roof after a few months.
Inspect the drainage system and look for a cracked or missing shingles. House-buyers should ask their seller how old the roof is and how it is being maintained. Better yet, get a professional roofer to inspect.
And while it’s important, the roof should not be the reference of the house price. Negotiate with your seller regarding the repairs and maintenance instead of asking the seller to lower the price.
2. Plumbing
Prospect Repair Cost: $25,000 – $50,000
Look for water stains, mildew, and sagging floors as these are all evidence of leaks. These could lead to expensive problems such as sewer lines or septic tank issues.
Check the water drainage as well as the water pressure. Run the water in the kitchen and bathrooms, toilets, and the condition of the water heater.
Sewer lines are rarely updated and some are even neglected for over 100 years. It’s very critical to conduct plumbing inspection by you or a plumber.
A price deduction may be necessary if a plumber identifies a leak within the property. But if a major repair is needed, house-buyers should renegotiate and make sure to cover any extra costs justly.
3. Electrical Wiring
Prospect Repair Cost: $3,000 – $20,000
Consider this as essential– not only to your budget but mainly for your safety. Faulty electrical wiring could be fire hazard.
It’s usual for older houses to have inferior electrical system. Upgrading the tube or aluminum wiring can be expensive to replace.
Examine the fuse box and all the electrical wiring or hire an electrician for a full inspection.
Negotiate repair credits to be paid by the seller if the overhaul is critical.
4. Flood Zone
Prospect Repair Cost: Flood insurance varies from hundreds to thousands of dollars annually. Get more information about your insurance here.
Houses next to beach or rivers are at a higher risk of flooding, unfortunate to most dream home locations.
Climate change has also increased the probability of unexpected rain water volume.
Houses in a high-risk flood zone can lead to a dramatic insurance cost increase. Know if your prospect’s house is within the flood zone by typing its address here.
Some streets may be more susceptible to flooding and some aren’t. Find out by talking to the local neighborhood regarding the area’s flooding conditions.
Alternatively, you can also ask the seller for any installed flood prevention e.g. French drains or sump pumps.
5. History of the House
Prospect Repair Cost: Depends on the issue. Usually piles up into thousands.
Know when and why the building’s previous repairs were done.
Poor renovations and repairs can spiral down into your pocket after the deals are closed.
Do your research about the house and the neighborhood through its former inhabitants.
Previous deaths and crime reports within the house may be a deal breaker to some buyers.
Reading through the compiled disclosure by the seller is your best lead to finding the date of the renovations and repairs. Check online crime reports for deaths in the house, as this is often not disclosed if not recent.
NOTE: New and freshly renovated houses could be a sign that the seller did a quick and cheap clean-up to attract more buyers. The disclosure form is your best guide in identifying house repairs and renovations.
Investing on your next property is expensive so it’s best to double-triple check on critical details before signing the deal.
These 5 signs are only the tip of the ice-burg essential for every house-buyers. Don’t be afraid to ask your seller if other things outside this list is bothering you. There are no questions to spare in ensuring your own safety.
Buy Like Rent is a Real Estate Agency based in Florida with an experience for over 50 years in rent-to-own, buy and sell, property investment, real estate brokerage, and mortgage banking operation services.
Buy Like Rent is your dedicated Real Estate broker with over 50 years of experience in selling residential real estate, buylikerent homes, and property investments.
