By Melissa Dorman, May 19, 2021
If you are touring a home and considering buying it, make sure you look for these 5 key issues that could sabotage your home purchase and create a headache during the home inspection.
1) Sewer Issues
Sewer issues can quickly become costly and messy. Look for standing water in the yard, signs of water or flooding in the basement or crawl space, and heaved walkways; these could be signs of a blockage or break in the underground sewer line that connects to the sewer main in the front of a home. Repairing a sewer line can be very costly and often involves tearing up your landscaping or driveway to repair the line. Make sure you do a sewer scope on every home you’re considering purchasing.
2) Bad Electrical System
Prior to the 1970’s, home’s electrical systems were very different than they are now. For significantly older homes, watch for knob and tube wiring and aluminum branch circuit wiring. These systems have a higher chance of causing a fire in your home and are costly to replace. Two indications of significantly outdated electrical systems are having numerous extension cords, as well as a lack of ground-fault circuit interrupter (GFCI) circuits in bathrooms and kitchens. GFCIs protect from electrical shock by monitoring the electricity flowing in a circuit and any disruption to the current.
Upgrading your electrical panel will typically cost you $2,000- $3,000, depending on your area and the size panel you need. Upgrading the whole home will be at least $10,000 but might be worth considering.
3) Foundation Cracks
Hairline foundation cracks are not a major concern, according to most specialists and home inspectors. These are caused by normal settling and are easy to repair. Cracks that are at least a quarter-inch wide, or horizontal cracks, are concerning. Generally, if you can fit your finger into the crack, then you should start worrying. Horizontal cracks often result from hydrostatic pressure against the home’s foundation.
Foundation repairs can be extraordinarily expensive. Small cracks and spot repairs can be only a few thousand dollars, but more extensive issues can be tens of thousands of dollars, so do your due diligence and get an inspection by a foundation specialist before buying the home.
4) Failing Roofing
During a home inspection, your inspector will look for a variety of signs that the roof is aged and worn. Large amounts of moss, loss of granulation on the shingles, buckling and curling of shingles, and missing shingles can all be signs that your roof is on it’s way out. Additionally, water stains on the ceilings on the interior of the home can indicate a leaky roof.
A new roof will commonly be $10,000- $20,000, easily, depending on the size of the home and the pitch of the roof.
5) Old Plumbing
Old plumbing can cause a lot of problems in older homes. Check the water pressure and listen for gurgling. Get into the basement or crawl space and look at the exposed pipes. Discoloration and flaking can be signs of corrosion. Older homes may have galvanized piping or use other materials that don’t last as long as modern pipes in newer homes. Eventually these will fail, often rusting from the inside-out, and will leak and flood the home. Replacing the plumbing in your home could cost several thousand dollars but may save your home in the long run.
Noticing and addressing these 5 major red flags before buying a new home will be instrumental in your success and happiness in the long term.
Melissa Dorman
Broker | OR & WA
She/Her
Ten years ago, Melissa was living in a slum in Kolkata, India, helping over 200 women escape sex trafficking by providing alternative work at a social business.
It was there she discovered her passion for financial education as a means of empowering people to move out of poverty. After graduating from UCLA with a Masters, Melissa spent 5 years working as a Social Worker; assisting clients facing homelessness, in jail, or at a psychiatric facility.
As much as she loved the work, imagining saving for retirement on the meager salary of a social worker was becoming grim. That's when Melissa discovered "passive income." In no time, she fell in LOVE with real estate as a vehicle for wealth. Soon after, Melissa began locating off-market multi-family properties to purchase through creative financing strategies and win-win opportunities. Two years into investing, Melissa quit her day job as a Social Worker to become a full-time broker and investor. Initially, she was drawn to people in difficult circumstances, so she developed extensive experience assisting families facing foreclosure, short sales, and probate. Melissa is well versed in helping her clients overcome complex real estate challenges.
Currently, Melissa is teamed up with Super Broker, Yascha Noonberg at Living Room Realty. Together they assist clients to achieve their real estate dreams, including how to strategically buy and sell a personal residence to maximize profits. Far from the slums of Kolkata, her greatest passion now is empowering other working professionals to develop passive forms of income through buying multi-family properties in Portland.
Read More
- T: 503-567-4697
- melissa@livingroomre.com
