Buying a home is considered to be at the very heart of the American dream. But if you miss the warning signs your dream could become a nightmare. Buying a home will likely be the biggest financial decision you make in your entire lifetime. The U.S. Census Bureau reports that home equity accounts for nearly one-third of the net worth of American families. Naturally, then, you will want to avoid a money pit that as Lifehacker.com says “is a black hole that sucks all the money from your wallet and sanity from your soul.”
Sometimes a money pit warning is obvious—like a house that has mold everywhere or a cracked and crumbling foundation or the house is listed “as-is”, but here are seven less obvious money pit warning signs—from the top of the house to the bottom— that you will want to keep an eye out for.
Roof
“The average lifespan for a roof is 20 to 30 years, but even newer homes can have roof problems that may require replacement or repairs, [and] neither is cheap,” advises AARP Magazine. On average a new roof cost about $10,000 in 2024.” But depending on the size, prices ranged from $5,852 to $13,038, according to HomeAdvisor.com. Even simple repairs can cost as much as $7,500.
“Considering this, it is important to find the remaining lifespan of your roof…before any purchase,” Yahoo! Finance suggests.“ And it’s not just about the cost of repairing or replacing a roof, “if [the roof is] left in a deteriorating condition [it] can cause more significant problems such as rot, mold, mildew, and even structural issues.”
“You may not be willing or able to get on a ladder and inspect the roof up close, but you can look out for missing shingles and clogged or broken gutters on the exterior,” AARP Magazine reports. “Binoculars can help. Inside, check for sagging ceilings and watermarks.For the parts of the roof that you can see, what does it look like? Has it darkened? Do you see shingles curling up on the edges? What’s the overall condition? If something doesn’t look right, it may be worth getting it checked out by a licensed roofing company. It may not kill the deal, but at least you’ll know what it will cost to repair or replace the roof.”
Dropped Ceilings
While there may be good reasons for the current homeowner to add dropped ceilings, they are also a cheap way to hide scary problems like bad wiring, crumbling old plaster or water damage from plumbing failures.
Rust
“You can hide a lot of things behind paint and some quick cosmetic work, but rust is harder to hide or eliminate. If you spot rusted appliances and/or pipes in the kitchen and bathrooms or rusty nails or screws, you might be looking at a house with moisture problems that are going to be expensive to deal with,” Lifehacker.com warns.
Low Water Pressure
Check all the taps and showers in a prospective home. Does the water just trickle out? If so, then that will be expensive and difficult to fix. (Run—don’t walk—away.)
Outdated Wiring
“Older homes may have outdated wiring systems, which can be both unsafe and expensive to replace,” Northwestbank.com cautions. “Modern homes feature safer electrical systems, while older ones often require rewiring, which involves accessing ceilings and walls—an extensive and costly process.” If you have to rewire the whole house Bankrate.com says “it can cost as much as $30,000. If the house, you are considering buying has two-prong outlets get an electrician to give you an idea of what you’re getting yourself into.”
Bouncy Floors & Foundation Issues
“Floors that bounce or buckle when you walk on them aren’t just a trip hazard. They could be a sign of a major issue, from water damage to a sinking foundation,” U.S. News and World Report says. “Bouncy floors can be signs of foundation problems, which are not inexpensive, and depending on other factors, like a high-water table, can be ongoing problems that you'll continually be fixing over the years.”
Windows or doors that are sticky or won’t open at all can be another sign of serious foundation problems. If this is the case, it may be time to look for a different home or at the very least have the foundation inspected by a competent contractor.
A Condo That’s Great on the Inside, But a Mess on the Outside
“Even when you’re buying a condo where you’re not solely responsible for exterior maintenance, there’s always the chance that you’re getting in over your head,” advises U.S. News and World Report. “[P]ay attention to a condo’s exterior as much as the interior…Inspect the grounds in their entirety. A condo’s homeowners' association can impose special assessments for nonrecurring but necessary costs, like repaving a street or repairing on-site facilities like pools and tennis courts. Those could bust your budget the same way an unexpected house repair could.”
Home Improvement expert Bob Vila offers this final piece of advice: “Before making an offer, have the house thoroughly inspected and gather repair estimates. If it’s listed with a broker, ask for a disclosure statement that lists all known material defects so you don’t come across unpleasant surprises later.”
