One thing after another falls apart, and all they can do is throw money into the expensive repairs.
While the movie may have been fiction, theres no shortage of homebuyers whove bought a money pit house.
These people bought a home that neededunexpected and expensive repairs.
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Debt can get out of control fast.
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That doesnt mean you have to let your debt run your life.
You may find youre traipsing through house after house, only to be disappointed.
Because its one of the biggest purchases youll ever make, its important to confirm its a good investment.
Here are some warning signs you should know about before you tour your next home.
They help gauge how much a property is worth based on properties similar to it.
Even the seller of a for-sale-by-owner property will typically take recently sold homes into consideration.
If a house seems too good to be true, proceed with caution.
If a home is underpriced, grab your magnifying glass and start looking for issues.
Mild Neglect
Home staging is serious business, and theres a reason for that.
Homebuyers pay close attention to a homes cosmetics.
Note a homes curb appeal, and take signs of interior or exterior neglect seriously.
Uneven Floors and Cracks
Watch for uneven flooring on the lower level.
If a foundation has cracked, the flooring above may start to show it.
Money pit homes may also have cracks on exterior walls.
It has to be addressed ASAP, and its probably going to be quite expensive.
Unfortunately, insurance doesnt covereverything.These resourcescan help you manage those unexpected expenses.
Discoloration
Water damage is particularly costly.
Warped surfaces and flaking paint will stand out, but some signs are not as obvious.
Pay close attention to areas around doors, windows, skylights and vent pipes.
Large roofs in particular can be extremely expensive.
Depending on the design and size of the roof, that alone could be over $100,000.
Strange Odors
The nose knows.
Take a deep breath as you walk into a house, and note what you smell.
A musky odor could be a sign of mold.
If the home has a basement, use the sniff test as you tour it.
As youre touring, be aware that some smells can be removed.
Insect Damage
Insects are tough to keep out of a home, especially in certain areas of the country.
But theres a difference between an occasional ant infestation and a pervasive termite issue.
These tips will help you spot a money pit house for sale before you sign the final paperwork.
The lender will probably require it if youre borrowing money to buy the house.
But even if youre paying cash, this is one step you shouldnt skip.
Not all home inspectors are created equal.
Youll want an inspector who represents your interests as the buyer.
Are you struggling to cope with financial stress?
First, take a deep breath.
Then, take a look at our roundup ofresources to help you manage your stress and your money.
Conduct Thorough Research
As a potential buyer, you have every right to ask questions.
Is the home in a flood zone?
Has it been taken on and off the market multiple times throughout the years?
Past repairs can also be a sign a home has issues.
Ask for a copy of the Sellers Property Disclosure.
Asking for a copy of this report can help you determine whether your potential investment is a good one.
