Buying a home is a significant investment, and the last thing any new homeowner wants is to find themselves sinking money into extensive renovations.
According to different surveys, people spend $3,600 on average per renovation project. This can quickly turn a dream home into a financial nightmare.
This article will guide you on how to avoid the renovation money pit through the importance of pre-purchase inspections. Interested? Keep reading to learn more!
The Hidden Costs of Home Renovations
Home renovations can be a costly endeavor. The average cost to completely renovate a house ranges from $15,000 to $200,000.
These costs can drastically increase depending on the characteristics of the build, underlying issues, location, and materials used.
For instance, renovating an entire home can cost, on average, $10 – $60 per square foot. Therefore, conducting a thorough pre-purchase inspection is crucial to avoid unexpected renovation costs.
Inspecting Windows and Doors: The Key To Save Big
Windows and doors are essential home elements often overlooked during pre-purchase inspections. However, they can be significant sources of energy inefficiency and structural damage.
While many homeowners think that windows and doors replacement is unnecessary, the overall energy loss via these units can go as high as 30%, leading to a significant increase in energy bills throughout the year.
Moreover, the initial investment into new windows and doors is usually considered relatively high even though the ROI for this home renovation project is a whopping 70%, also affecting the ARV (after-renovation value) a lot.
But if you are tight on a budget or a first-time home buyer, you might not want to invest extra money and time after the house purchase; therefore, inspecting this home improvement aspect in advance to avoid the extra costs down the line is crucial.
How To Conduct A Thorough Pre-Purchase Inspection
While windows and doors are to be thoroughly checked and replaced first thing if they are not up to a standard, there are many other elements to pay attention to if you want to avoid spending big on repairing your home right after purchase.
- Structural Elements: Examine the foundation, walls, and roof for any signs of damage or instability. Look for cracks in the foundation, sagging roofs, or walls that could indicate serious structural issues.
- Exterior: Inspect the house’s exterior, including the siding, paint, and gutters. Check for peeling paint, damaged siding, or clogged gutters that could lead to water damage. Look for signs of wear and tear, such as cracks, rot, or warping, which could indicate structural damage or poor insulation.
- Roofing: Check the condition of the roof. Look for missing or damaged shingles, signs of leaks, or sagging, which could indicate a need for roof repair or replacement.
- Plumbing: Inspect all visible pipes for leaks or rust. Check the water pressure in all faucets and make sure the toilets flush properly. Also, check the condition of the water heater and other plumbing fixtures.
- Electrical System: Check the electrical panel for any signs of faulty wiring. Test all the light switches and outlets in the house. Also, check the condition of the appliances and ensure they are functioning properly.
- HVAC System: Inspect the heating, ventilation, and air conditioning system. Make sure it’s functioning properly, and check for any signs of damage or wear.
- Interior: Inspect the interior of the house, including the walls, floors, and ceilings. Look for signs of water damage, mould, or structural damage. Also, check the condition of the windows and doors from the inside. Look for drafts which could indicate poor insulation.
- Kitchen and Bathrooms: Inspect all appliances in the kitchen to ensure they are functioning properly. Check the condition of the cabinets and countertops. In the bathrooms, look for signs of water damage or mould. Review the state of the fixtures and the water pressure.
- Professional Inspection: If you’re unfamiliar with home inspections, consider hiring a professional. They can provide a detailed report on the house’s condition and identify potential issues you might overlook.
Remember, a thorough pre-purchase inspection can save you from unexpected renovation costs and ensure your home is a good investment. It’s an essential step in the home-buying process that should not be skipped.
The Long-Term Benefits of Pre-Purchase Inspections
Conducting a thorough pre-purchase inspection can save you from unexpected renovation costs and ensure your home is a good investment.
It can also increase the home’s value, making it easier to sell in the future. Here are the potential costs of the most often carried after-purchase home renovation projects:
- Exterior: Repairing or replacing siding can range from $500 to $14,500, and painting a house can cost between $1,800 and $3,200.
- Roofing: The cost of a roof replacement can range from $5,000 to $10,000, depending on the size and material of the roof.
- Plumbing: The average cost to repair a plumbing issue can range from $175 to $450. However, major plumbing issues can cost thousands of dollars to fix.
- Electrical System: On average, electrical repairs can cost between $150 and $800. However, rewiring a house can cost between $3,500 and $8,000.
- HVAC System: The average repair cost is between $150 and $450, but replacing an HVAC system can cost between $4,820 and $9,350.
Pre-purchase inspections are crucial in avoiding the renovation money pit. In 2022, homeowners spent an average of $3,600 on home repairs.
Conducting a thorough pre-purchase inspection can save thousands of dollars in renovation costs. It’s an investment that can pay off in the long run.
So, before signing that purchase agreement, ensure you’ve thoroughly inspected your new home.