Whats Next for The 2025 Housing Market?

Whats Next for The 2025 Housing Market?

Whats Next for The 2025 Housing Market?

The Charlotte housing market has been anything but predictable lately. After years of skyrocketing prices and intense competition, things are finally starting to shift. But what does that mean for you? Whether you’re a homeowner, a prospective buyer, or just someone with a keen interest in real estate, it’s essential to understand the forces at play.

This blog will be your guide to navigating the Charlotte housing market in 2025. We’ll delve into the latest trends, analyze key factors like interest rates and inventory levels, and provide valuable insights to help you make informed decisions.

Get ready to uncover the secrets of the Charlotte real estate scene and discover what the year ahead may hold. Let’s get started!

Looking Back at 2024

Before we dive headfirst into 2025, let’s take a quick glance in the rearview mirror at 2024. Nationally, the real estate market experienced a bit of a slowdown, and Charlotte definitely followed that trend. We saw a noticeable decrease in the number of homes sold compared to the red-hot market of 2021 when seemingly everyone was buying and selling.

But here’s where things get interesting: one of the biggest shifts we observed in 2024 was a steady increase in the number of new listings hitting the market each month. Remember those dramatic interest rate hikes that started back in March of 2022? Well, they finally started to have a real impact on seller behavior. Many homeowners who had locked in those incredibly low mortgage rates were understandably hesitant to sell and take on a new mortgage with a much higher interest rate. It just didn’t make financial sense for a lot of people.

However, as 2024 progressed, we saw more and more of those homeowners decide to bite the bullet and make a move anyway. Life happens, right? People need more space, they need less space, they relocate for jobs, families grow… All those factors that motivate people to move were still in play, even with higher interest rates. This led to that increase in inventory we saw as the year went on.

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What the Experts Predict for 2025

Now, let’s zoom out a bit and see what the experts are saying about the national housing market in 2025. Economists are predicting a few key trends. First, they anticipate an increase in the overall number of homes sold across the United States. This makes a lot of sense, as lower interest rates are expected to entice more buyers back into the market. When it’s more affordable to borrow money, more people can afford to buy homes.

They’re also forecasting a period of more moderate price growth, somewhere around 2% nationally. This is a welcome change from the rapid price increases we saw in recent years. While some appreciation is healthy, double-digit growth isn’t sustainable in the long term.

And finally, the general consensus is that mortgage rates will gradually decline throughout the year. This is probably the most anticipated prediction! Everyone’s hoping to see those rates come down and make homeownership more attainable.

Now, while I think Charlotte will generally align with these national trends, I do believe our market has some unique characteristics that will set us apart and lead to even stronger performance.

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My Predictions for the Charlotte Housing Market

Here’s where I think things get really exciting! I’m predicting that Charlotte will experience a much more significant jump in home sales in 2025 compared to the national average. Why am I so bullish on Charlotte? Well, for starters, Charlotte is simply a hot market! People are moving here from all over the country, drawn by our strong job market, vibrant culture, and excellent quality of life. We have a ton of pent-up buyer demand. Remember all those folks who were essentially priced out of the market when interest rates went through the roof? They’re eager to buy, and as rates begin to fall, they’ll be back in the game with a vengeance.

Plus, we have a lot of homeowners who purchased homes during the pandemic buying frenzy who may now be looking to make a change. Maybe they need more space for their growing family, or perhaps they’re looking to downsize now that the kids have moved out. These “move-up” and “move-down” buyers will add even more fuel to the fire and drive market activity.

Home Prices

When it comes to home prices, I’m confident that Charlotte will continue to outperform the national average. We’re a rapidly growing city with a strong economy, a diverse range of industries, and a fantastic quality of life. People want to live in Charlotte, and that demand will continue to drive prices upward.

While I don’t think we’ll see a return to the double-digit price increases of the past few years, I do anticipate healthy appreciation in the 5-6% range. Charlotte’s desirability and continued growth will help to insulate our market from any significant price corrections.

It’s important to remember that real estate is a long-term investment. While there will always be fluctuations in the market, Charlotte’s strong fundamentals make it a great place to invest in real estate.

Selling A House Shouldn’t be Stressful

There is a pro-active way to sell your home that gets results

Mortgage Rates

Mortgage rates are a huge factor in the real estate market, and I’m watching them very closely. I tend to agree with the experts that we’ll see a gradual decline in mortgage rates throughout 2025. We’ve already seen the Federal Reserve start to lower rates, and I believe that trend will continue. This is good news for buyers!

My prediction is that we’ll see rates settle somewhere in the high 5% to low 6% range by the end of the year. One thing I’ve noticed is that every time mortgage rates dip closer to 6% or even into the 5s, we see a huge surge in buyer activity. So, if you’re thinking about buying, keep a close eye on those rates!

Of course, it’s impossible to predict the future with 100% certainty. There are always unforeseen factors that can influence the market. But based on current trends and expert opinions, I’m optimistic that mortgage rates will continue to trend downwards.

Charlotte’s Growth

I’ve lived in the Charlotte area practically my whole life, and it’s been incredible to witness its transformation firsthand. Charlotte is growing and evolving at an amazing pace, and I truly believe it’s all for the better. Yes, traffic can be a bit of a challenge these days, but that’s a sign of a thriving city!

There are so many exciting things happening in Charlotte: new businesses are opening, cultural attractions are expanding, and fantastic new residential areas are popping up all over the place. From the bustling Uptown area to the charming neighborhoods surrounding the city, there’s something for everyone in Charlotte.

It’s a dynamic city with a bright future, and I’m incredibly optimistic about what lies ahead for Charlotte. I’m proud to call this city home, and I’m excited to see what the future holds.

Connect with Us

Whether you’re a first-time homebuyer, looking to upgrade to a larger space, or ready to downsize for a new chapter in life, the Finngeiger team is here to guide you through the Charlotte real estate market. We have a deep understanding of the local trends, neighborhoods, and the intricacies of buying and selling real estate.

We’re passionate about helping our clients achieve their real estate goals. We believe in building strong relationships with our clients, providing honest and transparent advice, and going the extra mile to ensure a smooth and successful transaction.

So, if you’re thinking about buying or selling a home in the Charlotte area, we encourage you to reach out to us. Give us a call, shoot us a text, or send us an email. We’d love to chat with you, answer any questions you might have, and help you navigate the exciting world of Charlotte real estate.

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Is NOW a good time to buy a house in Charlotte? Or WAIT for the bottom?

Is NOW a good time to buy a house in Charlotte? Or WAIT for the bottom?

Today, we will answer the #1 question that almost everyone is asking our real estate team.  Is now a good time to buy a house in Charlotte? 

You might think the answer is obvious, right? There is a potential recession coming in 2023, mortgage applications have dropped to 25 year lows, and buyers affordability has diminished this year. To top that all off, we just had ANOTHER interest rate hike from the Federal Reserve.

So isn’t it obvious? You shouldn’t buy, right? Well, maybe, maybe not. In this article we’re going to be digging a bit deeper than just the headlines. We will take a look at the actual sales data, economic trends, and some basic principles that will help guide you to a good decision for your personal situation.

Is NOW a Good Time To Buy A House In Charlotte? 

 The reality is that some of you should absolutely not be investing in real estate right now.  But, there’s also some of you who should be taking action right now and buying property. 

To answer the question of “Is NOW a good time to buy a house in Charlotte?” we will want to consider a couple important details like your personal financial situation and your job security.

In this article we will cover:

1. Who shouldn’t be buying a house right now?

2. Who should be buying a house right now?

3. Why waiting for the market to “Bottom” is a bad idea. 

 

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Who shouldn't be buying a house right now?

1. Who shouldn’t be buying a house right now?

Homeownership has long been the American dream. A picturesque house of your own with a bright green lawn is deeply ingrained in our culture as something to aspire to. It has helped generations of homeowners build wealth that has been passed down to their children and their children’s children. However, for some of us out there, now may not be a good time to purchase a home. 

A. If you have to stretch yourself financially

If you have to stretch yourself financially, you absolutely shouldn’t be buying a home right now. Think about it, we’ve been experiencing record high inflation right now. If inflation continues at even 4, 5, or 6% in 2023 and your wage doesn’t also increase by 4, 5, or 6% to match those. extra costs then it just means you’re going to feel even more stretched. You don’t want to be “House Poor.”

Rapid inflation

B. If you’re facing any job insecurity

If you have any job insecurity right now, that would be the 2nd reason you wouldn’t want to purchase a property right now. Many experts are predicting that we could see layoffs and higher unemployment in 2023. If you lose your job and are forced to sell in the next 6 to 9 months then you will be in a compromising position. It doesn’t matter if prices don’t come down. Even if they go up a little bit, or stay the same, you could lose thousands of dollars. 

The cost of moving is very expensive and you would be faced with different fee’s and expenses. You can experience mortgage fee’s, you will have to pay movers, and you will be subject to fees associated with agents commissions, lawyers, taxes, etc. These fee’s can add up to 5 to 10% of the value of your property. That’s not something you want to be facing when the economic outlook can potentially be leading towards a recession. 

How much does it cost to sell a house? 

If you are considering selling your home and would like to know how much it ACTUALLY costs to sell your home, then check out our article: Selling your home: How much does it cost to sell a house?  We specifically outline all of the expenses, fee’s, and costs you could experience when selling your home.

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C. If you’re not ready, don’t rush

It seems like every time you turn on the news, they are talking about the recession coming in 2023.  It’s probably the most anticipated recession that’s ever been announced. It’s kind of like we penciled it in.  

So, if we are headed into an economic recession, and you still want to invest in real estate BUT you are not quite ready, DON’T RUSH.  Use this time to prepare yourself to make a much better decision a little bit further down the road. 

If you’re not ready, how should you prepare?

Here’s what I would be doing to prepare myself:

1. The first thing I would do is hop on a bit of a budget. 

2. Lower some of your unneeded expenses (Netflix, Starbucks, things you may not need).

3. Start saving as much as you can and build up an emergency fund. 

4. Pick up a “Side Hustle” to earn some extra cash.

5. Pay off as much debt as you can. 

I know that’s not the sexiest advice, but its the truth.

Anything you can do to prevent yourself from making a hasty, or quick, decision means you will likely put yourself in a better financial position down the road. If you can reduce your expenses, pay off debt, and save more money you will increase your debt to income ratio have a larger down payment.  This could lead you to getting better rates and terms in the future, when you are ready to purchase a home.

 

Budget

The Charlotte labor market is strong!

When it comes to Job insecurity, we do have some great news. The Charlotte NC job market is still very strong. Even if we see higher unemployment rates, and more job loss throughout the US, we will be more insulated from these effects in the greater Charlotte NC area.

So, being in the Charlotte area, you may be in a position to get a better job with better income. This will give you more permanence during uncertain times. 

 

Selling A House Shouldn’t be Stressful

There is a pro-active way to sell your home that gets results

Who should be buying a house right now?

2. Who should be buying a house right now?

If you are someone who has strong job security, low debt levels, and will not be over extended by a home purchase then now may be a great time for you to buy a home. Here are a few reasons why:

1. Rent prices have skyrocketed: Rental rates in the US and in Charlotte have skyrocketed over the past year, which means that purchasing a home may be more attractively priced than renting a home right now. 

2. House prices have fallen: Pricing is a lot more affordable than it was just 6 months ago. Even in the Charlotte area, we have seen around an 9% decrease in the price of homes in some areas. So you may be able to get into a home at a much better price.

3. Home buyers can now negotiate: Due to the economic trends, there are fewer buyers in the marketplace. This means you will be able to negotiate much favorable terms and can potentially get the home at a much better price.  Home buyers are now able to request the seller to pay for closing costs, request a home sale contingency, or other favorable terms!

4. Charlotte’s Booming: The fundamentals we see here in Charlotte NC are still very strong.  The job growth is still robust, there are a ton of people moving to the greater Charlotte area every day, and the average cost of living is still very attractively priced compared to other metropolitan areas.

Skyrocketing rent prices

So, if you are thinking of making a move, and are in a good position to do so: Don’t worry!  You’re not alone! We have so many people moving to the greater Charlotte area because of the affordability, the high paying jobs, and the great things to do, that we should be insulated from the worst effects of any recession.

It is true, over the past few months the Charlotte real estate market has softened, but not nearly as much as the United States real estate market as a whole.  Inventory is still very low in the greater Charlotte area and we are still selling many of our listings in just a couple of days. 

These are the ingredients that will keep Charlotte insulated from the worst effects from this potential economic downturn we may see in 2023. 

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Why waiting for the market to bottom is a bad idea

3. Why waiting for the market to “Bottom” is a bad idea. 

For those of you on the sidelines, waiting on the real estate market to “bottom,” you may have issues with this strategy. The problem with this is, even if you were able to predict the prices perfectly and they did go down, you’re not going to be able to call the bottom. The reason is, housing is a lagging indicator. This means the data that you would use to indicate we hit the bottom happened 3 to 4 months ago. By the time you knew to act, it would already be too late.  

And if you were able to overcome all of that then you would probably lack the courage to act. It’s not because of something you’re doing wrong, it’s just in our nature. Once we hit the “bottom” we will have peak fear, uncertainty, and doubt. The headlines and news will be so bleak the last thing you will want to do is step into the housing market and make a purchase.

Selling A House Shouldn’t be Stressful

There is a pro-active way to sell your home that gets results

There is also an opportunity costs for waiting on the sidelines. While you’ve been waiting on the sidelines, waiting for the bottom, you will be paying those record high rental rates rather than paying that money towards your own equity, in your new home. 

The far better strategy than “trying to time the market” is “time in the market” because no one knows exactly what’s going to happen in the future. One thing we do know though, the longer you do own real estate as an asset, the more likely it is that you will see great returns.

 

We know that all of our clients are looking to accomplish different goals on different timelines. If you are curious if NOW is the right time for you to make a move, we would love to sit down with you and discuss your personal situation and see if now is in fact a good time to sell. Feel free to call, text, or email us today! 

Contact us through:

📱Call/Text Direct (704)-631-3977

📧Email: info@thefinigangroup.com

💻Website: www.thefinigangroup.com

If you are considering selling your home, make sure you choose the best Realtor. Watch this video to make sure you are asking your potential realtor the RIGHT questions:  10 Questions You Must Ask Your Realtor Before Hiring Them. 

 

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Buying a home in Charlotte? 3 things you must do before you start your search!

Buying a home in Charlotte? 3 things you must do before you start your search!

It can be frustrating to be a first-time homebuyer if you aren’t prepared. Here are 3 tips from The Finigan Group on how to find your dream home-without losing your mind.

1. Get Pre-Approved for a Mortgage Before You Start

Know what you can afford before you start your search. By getting a pre-approval letter, you demonstrate to sellers that you are serious when you write your offer and it proves you can afford the home.

 

Benefits Of Preapproval

Some of the benefits of getting preapproved include:

  • You know exactly how much home you can afford. You and your real estate agent know your home-purchasing power once you have a preapproval letter in hand. This will help you shop within your budget.
  • You can make a stronger offer. Sellers need to know that the buyer they choose can afford their home. A preapproval shows a seller that you have the money needed to purchase the home.
  • You’ll experience fewer surprises. When you’re preapproved, you’re less likely to run into last-minute surprises or delays with your mortgage lender.

The bottom line? Request a preapproval before you start shopping for a home. Read on to learn why a preapproval may not reflect the final loan offer.

2. Focus On WHERE You Want To Live

They say the three most important things to think about when buying a home are location, location, location. You can change almost everything else, but you can’t change your home’s location. So when you go house hunting, consider proximity to your work, how the home is situated on the lot, ease of access, noise from neighbors, and traffic. Also think about access to parks, shopping, schools, and public transportation.

3. Choosing The Right Realtor.

Buying a house is a big deal, so you’ll want to select a qualified real estate professional to represent you in your transaction—someone who is both knowledgeable and will look out for your interests.

As a first-time buyer, you may not know there are differences in buyer’s representatives. If you select an aggressive buyer’s representative, you can be assured you’re working with someone who has received special training in representing buyers and has already established a track record with buyers. Find out who serves your area and interview more than one buyer’s agent before deciding who offers the best fit in helping you navigate your first home purchase.

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Selling your home in Charlotte NC? 5 Things you MUST do to Maximize Your Value

Selling your home in Charlotte NC? 5 Things you MUST do to Maximize Your Value

There are a variety of things that are out of your control when selling your home in Charlotte NC , including market conditions, location, price bracket etc…But there are a few things that are well within your control! These 5 tips can help put thousands of dollars back into your pocket!

In this post I want to explore the reasons around why its really worth spending time on your home before you leave it, both for you and for your potential buyers!

Of course, you want to maximize your profit when selling your Charlotte NC home. There are many things you can do to ensure that you get the most money possible for your home. In this article, you will learn about the top 5 things to focus on to ensure you can maximize your profit when selling your home here in Charlotte NC

Write the meta title under 60 characters and the meta description under 160 characters for the Selling and Buying a House at the Same Time: How You Can Make it Work Blog Post of The Finigan Gro

1. Curb Appeal

Curb appeal isn’t just about making your house more attractive; it’s about making it memorable and demanding positive attention. A home with high curb appeal can demand higher prices and take less time to sell. The outside is also what brings potential buyers inside.

The reality is that many homebuyers begin the buying process online and, of those, over half will drive by a home they saw online. That means that over half of your prospective home purchasers could make a decision on your house by what they can see from the street. Every part of your home’s exterior from the front entryway to the yard, driveway, sidewalk, walls, and windows can make an impression.

You probably won’t be able to update or polish every aspect of your home’s exterior, so what should you prioritize?

            •  Cut back tree’s and shrubs: Trees and shrubs should accent and enhance your house, not hide it. With a good eye, the right tools and a little time, basic shrub and tree trimming and pruning can yield impressive “curb appeal” results.
            •  Manicure your lawn: Keep your lawn freshly mowed, trimmed and edged. Give it special attention before weekend showings. If you don’t have the time or the inclination to do it yourself, consider hiring a reliable, professional yard service to keep your lawn show ready.
            •  Plant some color: Flowering plants are a quick, inexpensive and effective way to make your home look bright, fresh and inviting. Get advice as to which plants do best given the time of year and the amount of daily sunlight they will receive.
            •  Paint the house:Painting an entire house can be expensive, but may be justified if the current paint is in bad shape or the colors are simply dated. From a curb appeal standpoint, painting only the trim can give your home a fresh, clean, updated appearance for considerably less than the cost of painting the entire home. Color choice is key (whether painting the entire house or just the trim); a professional color consultant can help you select the color scheme that will likely appeal to the most buyers.
            • Clean the roof and gutters:Buyers notice roofs, and it goes beyond curb appeal. The roof is a major home maintenance and expense item. Tree branches on the roof, clogged, sagging, gutters and algae growth detract from the home’s appearance and give the impression of the roof (and the home itself) being neglected. Clean debris from the roof and gutters, have any moss or algae growth removed and reattach any loose gutters.
            • Freshen walkways and driveways: Pressure wash brick and concrete walkways, patios and drives. Put a fresh coat of sealant on black top driveways. 
            • Freshen walkways and driveways: Pressure wash brick and concrete walkways, patios and drives. Put a fresh coat of sealant on black top driveways. 
            • Address your mailbox: Your mailbox is one of the first things a buyer may notice. If the box is on a wood post, freshen the stain or paint the post a neutral color. If the mailbox itself has seen better days, replacing it is fairly easily and inexpensive.
            • Address your mailbox: Your mailbox is one of the first things a buyer may notice. If the box is on a wood post, freshen the stain or paint the post a neutral color. If the mailbox itself has seen better days, replacing it is fairly easily and inexpensive.
            • Your Front Door:Your front door is the first thing that buyers will see before walking into your home. You want to start with a good first impression. You want to make sure the front door’s paint isn’t peeling, or weathered. Major dings or dents are a no-no. Hardware like door handles should be in good condition, and weatherstripping should be intact, and most homeowners can fix those issues themselves.

2. Declutter & Staging Your Home

Before you can successfully show off your house to anyone (or even take listing photos) you need to ensure you have a home that people will want to live in: one that’s well organized and filled with ample storage space. To help, we’ve put together a list the most important places to de-clutter as you prepare to sell your home. And though we can’t promise it’ll shorten the length of time your home spends on the market, we can assure you it’ll make the staging process go a whole lot smoother.

There’s a common belief that rooms will feel larger if all the furniture is pushed against the walls, but that isn’t the case. Instead, furnish your space by floating furniture away from walls. Reposition sofas and chairs into cozy conversational groups, and place pieces so that the traffic flow in a room is obvious. Not only will this make the space more user-friendly, but it will open up the room and make it seem larger.

 

3. Have a Clean & Tidy Home

Most people expect you to clean the home before closing the deal. But also, a lovely and clean home can leave a favorable impression on every potential buyer. Remember that they will be poking around and looking through every inch of your home, searching for every detail.

While you could sell a house in poor condition and messy, it might be a bad financial decision. Unless you are selling your home “as is,” keeping it in top shape is important to raise the asking price.

4. Small Touch Up’s and Repairs

It is easy to miss a lot of the wear and tear that happens to your house over the years. But when you start thinking about selling, the state of your home becomes much clearer. You know that there are things that need to be fixed and cleaned up. However, you only have so much money and time to make repairs. So, what should you fix?

           1. Paint: Paint is one of the cheapest, easiest ways to update the look of your home before you list it. And you don’t need to be a professional painter to make this work for you, either. Watch a few videos online, pick your colors and go to town!

          2. Exterior: The exterior is the first thing buyers will see, so you want it to look good. Replace missing fence boards, add sod if the yard is looking the worse for wear, and clean up any junk that may have accumulated in the yard or on the outside of any storage sheds.

         3. Lighting: Lighting can make even the smallest home seem open and inviting. You want to maximize the perception of space, so you will want to take advantage of the many lighting options now available. You can learn more about lighting different spaces online and find a variety of affordable lighting options that will be far superior to the current overhead or stand lights in your house.

         4. Functionality: Go to your home and make sure everything works as it should – from the small things like doorknobs and locks to bigger stuff like your garage door.Everything doesn’t have to be new for a home to be desirable to buyers, but all the functional aspects of the home must be in good working order to fetch the best price. A few broken components are all it takes to start driving the price down, so get them fixed.

        5. Flooring: Bad flooring can quickly turn away home buyers because it’ll be one of the first things they notice when entering your house. Costs to replace flooring mainly depend on the material that you choose.

       6. Water Stains: You’ve learned to live with the results of a long-fixed plumbing snafu, but for buyers, a water stain suggests there could be a dozen pesky problems hidden beneath the surface. That’s why this is one of the things to do before putting your house on the market.

 

5. Depersonalize The Home

As hard as it sounds, you need to depersonalize the house to sell it. Try to see it through a stranger’s eyes and think zero clutter, warm wall palettes, soft textures, and small bursts of color—you’re aiming for neutral, but still charming!

Depersonalizing your home is overwhelming, we know. So, what are a few things to focus on when depersonalizing your home? 

            • Remove personal photos and family portraits
            • Start taking down those prized trophies, awards and framed certificate
            • Pack up your ‘collections’
            • Put away toys and sporting or exercise equipment. They are also considered personal items
            • De-personalize your bathrooms
            • Remove magnets from your fridge 

When you live in a home, especially for a long time, it’s easy to overlook the things that can make or break an offer. Selling your home is about taking an objective look from a buyer’s point of view. Remove yourself and your memories from the equation, and imagine that you are seeing your home for the first time.

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Is That Fixer Upper A Dream Home or A Money Pit? 5 Major Warning Signs to Help You Find Out

Is That Fixer Upper A Dream Home or A Money Pit? 5 Major Warning Signs to Help You Find Out

So, you have finally found your dream house after what could be weeks or months of searching. It is an old house that needs a little work — okay, maybe a lot of work — but its character and charm are exactly what you are dreaming of in a home.

Fixer-uppers are appealing, especially if you think there is potential in a property. Bonus if you are an HGTV fan. It also seems like a great idea if you want to save money on your home purchase. Likewise, the opportunity to put personalized touches and let your creativity show in the home can be exciting.

The problem starts when you realize that not all fixer-uppers are equal and worthwhile. And if you are not careful, that fixer-upper might turn out to be a money pit that could transform your dream project into an expensive nightmare.

A fixer-upper VS a money pit: How to tell

Generally speaking, a fixer-upper is a house that is structurally sound and should only need general maintenance and cosmetic repairs. The biggest thing to remember when purchasing a fixer-upper is to look beyond the surface. A money pit, on the other hand, has many major flaws and expensive issues that require extensive professional assistance to make it more livable. As long as the general systems of a home are in good shape, your budget is best allocated to refreshing the property instead of repairing it.

If the fixer-upper you are looking to purchase is plagued with even one or more of these huge deal-breakers, it’s time to consider running the other way.

The bones or foundation that supports the entire house and what is holding it together. Without a solid foundation, it is impossible to have a structurally sound home. Serious issues with the structure are a large, expensive, and time-consuming undertaking to fix that could potentially turn your deal into an ordeal.

Therefore, it is probably the most important thing to look at when hunting for a worthwhile fixer-upper. Keep an eye out not only for large cracks, but also for bowing walls, shifting masonry, uneven floors, and even moisture in the basement or crawl space when viewing a home. Better still, bring in a structural engineer or a foundation repair professional to inspect the foundation very carefully. If there’s anything questionable about the structural integrity of the house, the expense involved in repairing the home may end up being more than you’re willing to spend.

Water is meant to be confined within the building structure, such as pipes and plumbing. When it runs unabated in crawl spaces, basements, floors, or walls, it can cause significant water damage, which is disastrous, and a giant red flag. Moisture can damage a home visibly by warping the walls. Even a slow leak will rot out drywall, and could eventually weaken structural elements such as joists and beams.

Worst is, mold can thrive, which can cause serious health implications and be costly to remediate. Be aware of any damp smell, scour the ceilings for signs of leaks, and check every inch of the basement and foundation for cracks or water.

Another simple point to remember, if the mechanical systems of a home, including plumbing, electrical system, and heating, need a complete overhaul, you might want to think twice before taking that fixer-upper. These can all be expensive to update and have finite lifespans. Plus, outdated electrical systems can be extremely hazardous and cause electrocution or fire hazards. The value of fixing those problems will far outweigh the good, potentially leaving you out of pocket.

Many fixer-uppers might need at least some level of roof repairs, such as replacing some cracked, or missing shingles. But if the roof is already sagging, there are multiple layers of shingles, or the shingles are dry, cracked, and brittle, and you find evidence of major leaks on the ceilings, then it’s a different matter. A complete roof replacement can cost you thousands of dollars, so you must know the age of the roof before buying.

Not to mention, severe damage to the roof could also cause a myriad of issues, such as damage to the sheathing, trusses, beams, and rafters, resulting in water damage, mold, or structural issues, from wood rot. Unfortunately, none of these repairs are cheap.

Lastly, be diligent with pests that can eat away at your house and budget. Especially if there is termite damage, or worse, an active case of termites, treating the home can be incredibly costly. The structural damage these wood-boring insects cause can be more problematic because it is not always visible. When checking a fixer-upper or any home, look carefully for signs of an infestation, including crumbling, damaged wood, buckling wooden or laminate floors, mounds of termite pellets, mud tubes climbing foundation walls, or discolored or drooping drywall.

If you suspect a termite infestation, make sure to enlist the help of professionals such as exterminators and structural engineers to help you understand the full extent of the damage. Catching the damage early, could mean you’ll only need to cover the cost of extermination/treatment. However, finding it late should be your cue to look for a more worthwhile fixer-upper.

 

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Josh Finigan
The Finigan Group
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