Category

Home Condition

The condition of a home greatly influences its market value. A "fixer upper" may cost less to buy, but you'll need to put more money into the house to make any needed repairs. One has to financially plan for such repairs before buying a house. A brand new home may cost $200/square foot, while a home with many upgrades may cost $175/square foot, and lastly a "fixer upper" may cost $125/square foot. It's a personal decision based on one's financial constraints and/or skills as a repair person that can have major consequences, both financially or with quality of life.

Amenities are also important. A home with a driveway or finished basement might sell for a premium over a similar house without such amenities.

There was a famous movie called The Money Pit starring Tom Hanks (1986) about a couple that purchase a mansion that quickly starts to fall apart. It was advertised as a "distressed" or "quick" sale property by an unscrupulous real estate broker. Every potential home buyer should research the condition of a home before buying, including the hiring of a home inspector, and putting legal clauses into the Purchase and Sale Agreement that require a home inspection be done and what remedies (financial or physical) will occur if issues are uncovered during such an inspection.

Quite often making any repairs will require compliance with current building codes, and such repairs could be extremely expensive. For instance, a home may have its own septic system, but the town may new require a municipal sewer hook up be installed (with a meter) when such systems are replaced.

The following are some home condition factors that may influence the market value of the home:

 

Some Home Condition Factors



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