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How to Avoid Buying a Money Pit Home

Monday, November 8, 2021   /   by Sushma Khinvasara

How to Avoid Buying a Money Pit Home

Photo by Binyamin Mellish from Pexels


When buying a home, it can be easy to get carried away with the excitement especially if you're a first-time homebuyer. As you look around the house, you can already imagine where to place the furniture, how to decorate the walls and so on. But don't forget to look for signs of trouble when buying a fixer upper house, especially in difficult to spot areas that could cost you a lot of money along the way. Here are common mistakes you should avoid when it comes to buying an old house.

1. Not paying attention to the red flags

Do you get starry-eyed when exploring new places? This would not be helpful when you look around a home that you're considering to buy. Among common areas that you should pay extra attention to are the roof, plumbing, electrical, HVAC systems, cracks, and molds. For roofs, check for any sign of leaks in the ceiling. For plumbing, make sure there is a good flow for fresh water to get in and dirty water out to the sewage. Check if the electrical wirings are in good condition and if there won't be a power failure when you turn on all the appliances at the same time. Lastly, don't forget to inspect the heating and air conditioning systems as well as crack on the walls which might indicate problems in the foundation. When you ignore these red flags, old house renovations could cost you a lot of money.

2. Not getting a home inspection

Because of the excitement, you might forget that you're buying a used house instead of a new one. Of course, there is no such thing as a perfect home. However, a seller is obligated to give you the home in the same condition when you bought it. When you buy a used house, you have more reasons to get a home inspection before you sign any paper. A home inspection will give you an idea of the true condition of the home, whether there are issues or underlying problems. A seller might have a home inspection result ready before listing their homes, especially on a hot market when things are moving along quickly. In a multiple offer situation, a home inspection might not take place at all. If getting a home inspection is possible in your case, make sure to get a trusted inspector from a trusted company who would make sure to follow the Canada home inspection checklist.

3. Not asking for property disclosure

A property disclosure statement is an outline of any defects that might lower the value of a home. Sellers are expected to disclose these defects to potential buyers. A property disclosure can range from roofing and plumbing problems, to structural damages in the property, and even pest problems. Basically, it's a list of flaws that can potentially cost money later on, and prevent the buyer from enjoying the property. Although not mandatory by law, a buyer's agent might request for a disclosure. Those who bought a house with problems not disclosed will likely have regrets sooner or later.

These are just some of the common mistakes buyers make when buying a used home. Try not to get carried away with the excitement of home buying, instead be realistic with your expectations and look for potential issues in the property. Being practical and sticking to your original plans/needs for a property can also help you maintain your focus in the entire homebuying process.

If you have any questions or need help buying your home, I can help. You can contact me at 647-834-9928 or send an email to sukhinvasara@gmail.com

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Century 21 Green Realty Inc. | Sushma Home Selling Team
Sushma Khinvasara, Sales Representative
6980 Maritz Dr, Unit 8
Mississauga, ON L5W 1Z3
647-834-9928

Information is provided exclusively for consumers’ personal use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS®.
Information is provided exclusively for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS®. Copyright 2021 Last Updated November 28, 2021
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