How To Avoid Buying A Money Pit

By LINDSAY FRICKS

It’s a home buyer’s worst nightmare… The house looked good during the general inspection, but after moving in you realize it’s a total wreck and needs major repairs. You just spent your savings on a down payment and now you’re faced with a bunch of unexpected costs. UGH!

Part of my job as your trusted real estate advisor is to help you identify potential problems so you are aware and prepared to handle them should they arise in the future. Having toured hundreds of homes and attended countless inspections, I have developed a keen eye for spotting potential issues such as deteriorating roofing, outdated electrical, water leak patches, old appliances and poorly completed renovations. These are all items we weigh when determining if an offer will be made on a property based on our assumptions of the house condition.

Lindsay Fricks Real Estate Arizona

Here are my tips to avoid buying a “lemon” house:

  1. General Inspection- Once under contract on the home you’ve picked it’s your time to conduct thorough due diligence on the condition of a home. This usually starts with a general home inspection that evaluates the condition of the home across ~500 key points within the electrical, plumbing, HVAC and other major systems within the home. This is a great first step, but is not nearly comprehensive enough.
  2. Additional Inspections- Don’t try to save money by skimping on additional inspections. Depending on the age and location of the home along with the general inspection report, I typically recommend doing some additional specialized inspections to cover basis. Things that you can’t see, like sewer lines, can be super costly repairs and definitely something you want to know prior to moving into a home. Other common specialty inspections I recommend are HVAC, Electrical and Roofing. These are the big ticket items in the house that all clients should be well informed on before purchasing. Budget $750-$1000 for all the inspections… you won’t regret the expense.
  3. Get Quotes on Everything- The benefit of getting speciality inspections is that you also receive quotes for the necessary repairs. This can be a good gut check on if this is something you can live with and repair later or something that’s super costly and a deal breaker for the home.  By providing this information to sellers you’re also giving them further rationale to justify the repair. 
  4. Research- Within the inspection window you will be presented with the Seller Disclosure which shares any known current or past issues on the home. Review this with a fine tooth comb and work with your agent to clarify any of the points of concern with the sellers. I also highly recommend clients pull the public records for permits and inspections to make sure things are legit. It’s also a good idea to request the history on utilities and general maintenance expenses. For example, if the property has large trees it’s totally fair to ask for their records on how frequently and how much it costs to maintain those trees. 
  5. Request Strategy- Prioritizing your seller repair requests is critical to a successful home purchase. Please keep in mind, this is not a time to renegotiate the price of the house. This is where you request necessary repairs on items that impact the immediate usage of the home and or present a safety hazard. Typically, the seller is willing to complete a portion of the repairs that fall in these categories within reason. On occasion, the seller will offer to credit you to do the repairs yourself after closing. With any large scale repairs I always advise having them completed by the seller and re-inspected prior to closing. 
  6. Home Warranty- Lastly, I always recommended that a home warranty is included in the purchase of a home. Regardless of if the buyer or seller pays for it, it’s a nice safe guard should any unexpected repairs come up that weren’t covered in any of the inspections. 

As your real estate guide, I have processes to make sure that we cover all your bases and make sure we put every safeguard in place to avoid a potential money pit. I pride myself on providing all the resources and information for you to make the best educated decision for you and your families investment. If you have any questions or concerns on navigating this process please don’t hesitate to reach out. 

Lindsay Fricks- Helping you, your family and friends Live & Love in Arizona!



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Median Home Price

$325,000

Annual Appreciation Rate

+7%

Estimated Population

450k

Median Age

34

East
Valley

why you want to live here

The two largest and most popular cities in the East Valley are Gilbert and Chandler. Once known for agriculture, the area has now been transformed into some of the most well known suburbs. Both cities have experienced tremendous growth in population and along with it now has all the amenities of larger cities. The suburbs are highly focused around families and have lots of parks, recreation and many family events year-round.

Median Home Price

$261,096

Annual Appreciation Rate

+8%

Estimated Population

1.6M

Median Age

33

Central
Phoenix

why you want to live here

Phoenix is the heart of The Valley of the Sun and capital of Arizona. Known for warm temperatures year-round and sprawling urban space surrounded by desert mountains. Phoenix is the 6th largest city in the US and home to nearly 1.6 million people. Phoenix has just about something to offer everyone: numerous golf course, professional sports teams, hiking trails, concerts, festivals and much more. With an affordable cost of living there’s a place for everyone with the Phoenix metro.

Median Home Price

$308,750

Annual Appreciation Rate

+8%

Estimated Population

174k

Median Age

28.5

Tempe

why you want to live here

Tempe is a city just east of Phoenix, in Arizona. Its striking Tempe Center for the Arts hosts concerts, dance and comedy shows. Nearby, Tempe Town Lake is dotted with kayaks, pedal boats and paddleboards. Tempe Beach Park hosts outdoor festivals. Rising above the city, Hayden Butte is a mountain dotted with centuries-old rock art. Sporting events and concerts are held at Wells Fargo Arena.

Median Home Price

$725,000

Annual Appreciation Rate

8%

Estimated Population

36,241

Median Age

39

Scottsdale

why you want to live here

Scottsdale has long had a reputation as one of the most affluent cities in the West most well known for high end golf, spas, resorts, restaurants and shopping. There are over 27 golf courses located within the Scottsdale boundaries. The Southern part of Scottsdale is home to the historic Old Town area. The southwestern charm, numerous restaurants, bars and shopping as well as exciting nightlight make Old Town a hot spot for both young and old. Central Scottsdale is home to many popular golf communities such as McCormick Ranch, Gainey Ranch and Kierland Commons.  North Scottsdale is home to to two of the valleys largest annual events: the Barrett Jackson Auto Auction and the Waste Management Open PGA tournament. These events along with the 5 professional baseball spring training facilities bring millions of visitors into the area throughout the Spring months.

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