Many people purchase homes in need of significant repairs. After repairing the property, they sell the house for a profit in the retail market. In real estate terms, it’s called buying a fixer-upper. Professional individuals and companies are doing this job.
Buying a renovated home can be the perfect choice. You can find a historic home with the right number of bedrooms, and modern amenities. If you are interested in purchasing a rehabbed house, you need to be aware of a few things.
Purchasing a renovated home can be different from buying a newly constructed property. While there are rehabbers out there, who do professional work and make sure that the renovated house is fit for living in. There are flippers out there who believe putting lipstick on the pig will do the job. The job might be done but only for a few months. As soon as you start living in the house, the problems begin to appear.
Here are a few tips to help you if you are planning to purchase a rehabbed house in Connecticut.
Check out the building permits
Any major rehab requires approval. You need permission before you can add an extra room or change the floor layout. Most old homes require some building permits before they can be renovated. If the seller did not obtain the licenses, it is unlikely that the home was repaired properly. It can be the case that you’ll be paying legal fees later for the unpermitted work in your house.
Contractor’s License
Licensed contractors follow a code. They have a procedure in place. Licensed contractors know which job requires permits and how the work should be carried out. When buying a renovated house, you can ask for the contractor’s license or a transferrable warranty.
Carry Out a Home Inspection
A home inspection can highlight the issues with the property. When getting a mortgage, the bank requires you to hire a professional inspector, but you can inspect the home yourself when you are visiting the site.
Mostly structural or mechanical issues are ignored, and you’ll see cosmetic fixes are applied to hide such problems. A professionally renovated house has an updated exterior as well as the interior. Observe the wiring in the attic and the basement. Take flashlight. Look at the sewer & water lines and plumbing fixtures in the house Check the electrical wiring. When in doubt, ask questions:
- What is the age of the house?
- Which section required most work?
- Did you obtain permits?
- What things did they change in the house?
Request a Home Warranty
Purchasing a home warranty for the buyer is customary. The warranty will cover the appliances and systems of the property for a defined period. You can request the warranty that covers water heater, plumbing, electrical work, and the HVAC. If a problem appears in the future, the warranty will cover the associated costs.
Certificate of Occupancy
Before you purchase a house, you need to obtain the C of O. It is another security layer that helps you invest in the right property. The Certificate of Occupancy checks the structure of the house and ensures that local building codes have not been violated during the renovation/construction process.
Learn the Difference Between Home Rehabbing and Flipping
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