Before deciding on buying a new home, you probably think if it is a good investment or not. You might also consider the location, the size, the design, and others. While buying a newly furnished home could be very exciting, buying a home with water damage could be terrifying.
Buying a home with water damage in the past is a risky investment. The water might have compromised the structural integrity of the home or other hazards might be present, like unsound walls and mold growth, or there could be continuing issues even if the existing damage has been addressed. However, there are steps and precautions you can take before closing a deal to avoid these risks and to make that home the right investment for you.
First and foremost before closing a deal, you have to determine the severity of the damage and the costs of the repairs. Below are the steps you can follow before making your final decision in buying a home with water damage.
Step 1: Schedule an Inspection of the Home with Water Damage
Should I buy it or not? To decide whether to buy a home with water damage or not, ask these questions:
- What was the cause of the water damage? Was it because of overflowing water, a broken pipe, or a leak?
- How much damage was done? What was the source of the damage?
- How long has the water sat in the affected area? Was the damage fixed immediately?
- Who did the restoration? Was it done by professionals? What actions were taken?
- Was there any testing done to make sure that the source of the damage was properly fixed, the mold was properly removed and the structural damages were fully fixed?
You can ask these questions with the homeowner or an agent, but it would be best to hire a professional home inspector.
A home with water damage, even if repairs have been done, could still have underlying issues that were not noticed and addressed. A home inspection can help you get the full details of the damage. An experienced home inspector understands the effects of water damage on a home and can identify any hidden damage. They will inspect all corners of the home, including walls and walls behind the cabinet, drywall, ceiling, floors, carpeting, subflooring, and others. The inspector will check if the source of the damage was properly fixed. They will also do a thorough inspection of any other hazards such as mold and rot.
A comprehensive inspection will give you precise and thorough information about the current condition of the home with water damage. This will help you decide whether to buy it or not.
Make sure to get a copy of the home inspection report.
Step 2: Consult A Contractor And Get The Estimated Repair Cost for the Home with Water Damage
Once you have completed the inspection and got the detailed report of the home with water damage, seek a contractor.
Consult a contractor who is skilled and experienced in water damage restoration. The contractor will assess all damages in the home and provide you with an estimated cost for the repairs. To give the contractor the details of the damage, give him a copy of the home inspection. If possible, let the contractor evaluate the home with water damage on-site. But, make sure to get written permission from the homeowner if the contractor needs to take intrusive tests for structural damage or hazards such as mold. To make sure that you will get an accurate estimation, it would be best to hire 2 or more contractors who would assess the home with water damage.
Step 3: Evaluate Repair And Restoration Cost of the Home with Water Damage, then Make A Bid
Some of the effects of the water damage are left unnoticed. Thus, the repair and restoration could be more expensive. Make sure to evaluate and inspect all the reports given to have a proper calculation of the repairs to the damage.
Contact some local real estate agencies to get the market value of the home and ask them about the cost of the same houses in that certain area. When you already know the market value of the house, subtract the cost to the total repair cost. Once you have the resulting figure, you can now decide on your bid. You should bid around the amount of the total cost or you may choose to lower your offer with the seller to open negotiations.
Make sure to inform the seller that your bid includes the water damage restoration cost.
When done with all the information and numbers, talk to your real estate agent about the bid. You may also consult a real estate attorney to help you in this process. Then start negotiating with the seller. If necessary, you can do some arrangements, such as asking the seller to make certain repairs before the offer is accepted.
When the deal has been accepted and agreed, request a copy of the sales contract and review it to make sure that all terms related to water damage costs are correct. Consult an attorney if there are terms and conditions in the contract that are unclear to you.
Step 4: Obtain Homeowners Quote
This could be the last thing you have to do before closing the deal, but this one is very important to know whether this house is a good investment or not.
Buying a home with the history of the water damage might be covered or not, depending on your homeowner’s insurance policy. Your best option is to get a comprehensive insurance policy. Consult several local insurance agencies to find out if they will cover repair if issues on water damage return. Also, ask them if they have special conditions (like higher prices, limited coverage, etc) for homes that have a history of water damage.
If the home you are intending to buy is in a flood zone or an area with a high risk of water damage, you may consider adding flood insurance to your policy or you may ask for recommendations.
Step 5: Look For a Certified Water Damage Restoration Company
Once you have closed the deal and the home is already yours, start the water damage restoration immediately. Do not delay. The damage becomes more expensive, more difficult to repair and time-consuming if it stays longer. Look for certified, trustworthy, and experienced water damage restoration professionals to fix the damage and make sure that your new home will come back to its excellent condition.
You may contact Superior Restoration. We do all types of water damage restoration and cleanup, could it be emergencies or untreated water damage. Our company also provides flood clean up and mold removal. We assure you to give your new home the best condition it can have. Call us today!