You’ve finally found your dream home. It’s a gorgeous place with all the space you need, including just the right amount of bathrooms for your entourage of teenagers. It’s even located in the ideal neighborhood, close to all your favorite spots. The only downside is that this beautiful house is hiding a secret: water damage.
Upon discovering this information, you may feel like your dreams have been shelved. However, there is some good news. A house that’s in need of repairs due to water damage doesn’t have to be written off entirely. It may be salvageable. And there are a few things you can do that will determine if it’s a smart investment.
3 Things to Do When Buying a Home With Water Damage
If you’ve fallen in love with a home that has water damage, don’t lose hope just yet. It doesn’t mean the place is a lost cause. Instead, there are three things you need to do before making the purchase.
- Receive Professional Advice
Many people don’t realize that even a small leak can cause a big problem in a home because water damage can spread quickly. Floors, walls, and furniture absorb the water and lead to structural damage, mold, and cosmetic issues if not treated immediately.
In the US, there is no law that requires a buyer or a seller to conduct an inspection when purchasing or selling any home. However, a home inspection will give you a good idea of any problems (water damage included) when you are looking to buy a new home.
An inspector will be able to identify the cause of the water damage and potentially inform you of any posthumous damage like structural problems or mold growth. The inspection will also reveal any cracks in the foundation, leaking pipes, or other issues that may cause a problem down the road.
- Evaluate the Repair Costs Before Committing to the Purchase
After you’ve had the home thoroughly inspected, you’ll know what work needs to be done. If prior water damage is a factor, the Restoration 1 team will be able to provide a full evaluation and estimate for repairing the damage, remediating mold issues, and potentially direct you to the cause of the water damage so this problem never occurs again.
Once you have an estimate, you’ll need to factor the repair costs into the price you offer on the home. Because water damage can cause serious issues such as mold and structural problems, this is something that the sellers cannot ignore. You need to make sure you’re getting a fair price considering the property restoration costs that you’ll incur.
Here’s some advice to take into consideration:
Determine the Market Value of the Home: To start, you need to know what the house is worth, so you don’t pay over what the house is valued at – especially since there’s damage to repair.
Subtract the Cost of Water Damage Restoration: By subtracting the costs of repairs from the home’s market value, you’ll be left with a reasonable price to present to the sellers. Doing this ensures you’ll have the necessary funds to fix the issues with the home.
Consider Dropping the Offering Price a Little Lower: You may want to consider going slightly lower than the aforementioned price because sometimes repairs cost more than expected. This way, you’ll have extra wiggle room should any other issues arise.
- Get Good Homeowner’s Insurance for Future Coverage
Finally, the next step is to look into getting homeowner’s insurance for this property because previous water damage can impact your coverage options. You can reach out to your local insurance agencies for quotes and available policies. You’ll need to know if you’d be covered should you notice issues in the future that are related to past water damage.
Unfortunately, some insurance agencies will deem a water-damaged house too risky. You may find that insurance rates are either sky-high or that the agency won’t cover you at all. In this instance, it would probably be wise to pass on this particular house.
While you may be tempted to put in an offer on a home right away, following these three tips will help you make the right investment. After all, you don’t want to pour your money into a home that simply isn’t worth the hassle.
Learn About Our Water Damage Restoration Service
Here at Restoration 1, we’re familiar with the mess that water damage can leave behind. Our team is equipped to handle a variety of water-related problems. We can assist in repairing frozen and burst pipes and cleanup for ceilings, walls, basements, and more. We’ll also remediate attic and basement mold and black mold in your home.
Contact us today to learn more about our residential, commercial, and industrial services.