Staying out of the money pit: Avoiding a bad home

Buying a home is always a bit of gamble, even with new homes. The largest gamble is a pre-owned home. You need to be careful to not get stuck with a money pit. Here are 5 simple ways to avoid getting stuck with a giant money pit:

1. The layout and size - Look closely at how the house is designed and how your family will use it. If you might need to put on an addition, it’s going to cost you. Also, think about how your family might change in the next 20 years.
2. Neighbors - Look closely at how the neighborhood fits with your needs. If the neighborhood is an uncomfortable place, you might find yourself moving much sooner than you had planned.
3. Condition - When you look at the home, you need to think about more than just what shows up on the home inspection. Calculate the costs of repainting, new molding, and nearly everything else. It can cost you thousands just to fix the house up the way you want.
4. Resale potential - Think ahead to how much this home might be worth when you go to sell. You might not want to think about getting rid of the house that you just bought, but it’s likely that you will at some point, so plan ahead.
5. Shopping and arts - The proximity to shopping and arts can be a great indication of the neighborhood and the home’s long-term value. Closer is always better and will increase the value of the house.