What to Consider When Buying an Older Home

Shiny and new isn’t for everyone, and with the current housing market outpricing many hopeful buyers, taking a chance on an older home might be the best bet on fulfilling those dreams of homeownership. There are a number of things to consider, though, before taking that leap into a trendy mid-century modern or the charm of a century-old farmhouse, so it is important to proceed with caution (as well as a solid dose of excitement).

Do Not Forego the Home Inspection

House-shopping for an older home is not the time to save yourself a few bucks by foregoing a home inspection. Aging properties most definitely require an extra set of experienced eyes to look out for potential problems.

An important aspect of any home, but especially an older one, is the foundation. Over time, homes may settle or shift, and these changes can create cracks or weak spots in the foundation and overall structural integrity of a property. Hire an experienced home inspector with solid references, and kindly request that they pay careful attention to this essential component.

Also, be on the lookout for any signs of water damage or mold as this could indicate unseen issues with the foundation or even the roof, another key factor of a home inspection. Peeking into attic areas can show signs of leaks, pests, or inadequate ventilation or insulation, as well. Ask your realtor to obtain the age of the roof and any applicable warranty information should problems arise in the future.

Closely Examine Electrical & Plumbing Systems

Another area of the home to have closely inspected are the plumbing and electrical systems, as they may no longer meet current building codes if the home’s build date is decades prior. Wiring in older houses can be a fire hazard, especially if it hasn't been upgraded for modern safety standards, while plumbing systems often have old pipes that can become compromised. Save yourself future headaches by ensuring these systems are up-to-date, or at the very least, in good repair prior to purchase.

Beware of Toxins

Older homes may also contain hazardous materials like lead paint or asbestos. These materials were commonly used in households up until nearly the 1980’s, so any property built before that time could still contain these toxins. Have the inspector check for these issues, and include removal and/or mitigation as a condition of the sale if possible.

Remember that Remodels Aren’t Free

For those with vision, an older property can make a great canvas for creativity and individualized style, but before your imagination runs too wild, take a look at how much those upgrades are going to cost. Full kitchen or bathroom renovations tend to be the most expensive rooms to rework, but even smaller painting projects and minor upgrades can add up.

Asking a contractor to provide a detailed quote on any necessary projects or room remodels will help you ensure that you don’t end up in over your head after closing. Even if you plan to tackle much of the work yourself, take time to write out a detailed list of all materials, tools, and any additional expenses to avoid sticker shock down the road. Don’t let a few needed updates dash your dreams of homeownership, though, because while remodels aren’t typically free, there are some major ways to cut expenses on more basic projects as long as you are willing to think outside the box.

Consider the Home’s Historical Value

Houses built in historic periods or in historically significant neighborhoods may be subject to certain preservation regulations that everyday homeowners are often unfamiliar with. Check with local authorities regarding requirements related to preserving the home's historical integrity and value to understand what may be required of you should you proceed with the purchase.

Adding modern amenities or additional square footage is not always possible with properties that fall under historic preservation guidelines. Altering the appearance of the home might be off-limits, as well, or at the very least, require precise attention to detail at an added cost. These considerations can sometimes pay off in the long-run, though, as some historic homes actually appreciate over time. This can make buying an historically relevant house a great investment when you’ve really done your research. Assess the local real estate market and consult with experts to determine whether the home is likely to increase its value as it continues to age.

Buying an older home might be the ticket to crossing the threshold of your very own front door, but a decision to purchase this type of property should not be rushed. For the right buyer, though, one who is willing to do a little research, those old bones might just turn into home sweet home. By understanding the potential problems, assessing any regulations connected to historic preservation, and estimating the costs of renovations, potential buyers can feel confident in their choice to either keep looking or take a step back in time.