With the current glut of foreclosed houses hitting the market and with the real estate market slowing down, many houses are sitting empty for long periods of time before being sold.  There are several items to check for on a house that has been abandoned for a significant period of time that could mean costly repairs:

Structural Damage

Water that accumulates in the basement and stays there for months can wreak havoc on the structure of the house.  Check steel posts for excessive rust near the floor.  A good home inspector can help you analyze the seriousness of cracks in brick and concrete basement walls that could be major repairs.

Damage to Utilities

If water has accumulated in the basement, the furnace, hot water heater, washer and dryer, and electrical panel may have been seriously rusted, possibly beyond repair.

Damage from Humidity

An abandoned house can trap humidity.  An excessively humid house can lead to rusting out of the heating and air conditioning ducts, rust to electrical wiring, warping of dry-wall causing nail-pops and curved walls.

Plumbing Problems

Pipes can break during the winter making a huge mess if nobody’s home to turn off the water.  In addition, toilets that are not used regularly will tend to have mechanics that rot out and the toilets could run constantly.  Sinks may leak and not function properly.

Break-ins

Abandoned houses are playgrounds for teenagers.  Windows may have the locks or glass broken, doors may have had jams broken, garage doors could have broken mechanics from being forced open.

Pests

Bees, rodents, and more will make a house their home if they’re not actively kept out.

Just remember that everything deteriorates unless maintained, and while the bargain you get in purchasing an abandoned house could be significant, make sure you have a home inspector tell you how much really needs to be done for you to reclaim that property.

I’ve compiled a list of recommended specialists for repairs and housing-related work. I don’t receive a kickback in any form from any of these people. I recommend them because I know their character and their work and because they can be trusted to do what’s best for their clients. They are all Rochester-area folks.

Realtors

Jim and Jen Wimmett - www.theNYteam.com - 615-0107
Jen and Jim are a husband and wife realtor team that are honest and down to earth. They’re not pushy and will go the extra mile for their clients. They’re as honest as they come and will treat you right.
Michele Ladd - www.MicheleLadd.com - 729-0966
Michele is a top-notch realtor who is involved in the community and does what’s best for her clients. She specializes in luxury homes but can help you with any of your real estate needs.

Electrical

Steve Nichols at Nichols Electrical - www.NicholsElectrical.com - (585) 749-5999

Steve is a master electrician who would rather lose money than rip off a client. He’ll recommend only necessary repairs and give you only what you need. He’s as honest and hard-working as they come, involved in his church, and is a great family man.

Building Materials

Simplified Building Concepts - www.SimplifiedBuilding.com

These guys specialize in the design and sales of structural steel pipe and pipe fittings (great stuff for railings and a variety of household needs.) They sell tinker-toys for big people that will help you with any number of applications.

Web Design

I know its not a housing field, but in case you are looking for a good web designer, Chris Pollock made this site. His web address is www.web.simplifiedbuilding.com. He’s got solid character and a heart to help people and can work with you on pricing.

Buying a house is a huge decision and the moving season in life is always a stressful one. However, it is important to act prudently to make sure you don’t make these big nine mistakes many homebuyers make.

1. Not planning for repairs

   Part of the cost of owning a home is the cost of maintenance and repairs. When trying to decide how much home you can afford, consider all of the maintenance that will need to be done. You can expect appliances to fail, roofs to wear out, driveways to corrode, windows to break, etc. Since you’re not renting anymore, all of those repair costs fall on you. While a home inspection cannot predict the future, it can tell you what items are in need of repair at the time of the inspection, so you can know what you’re getting into.

2. Borrowing too much
   
   While your banker may tell you to borrow all they’ll let you borrow, you may want to reconsider taking that advice. The borrower is the slave to the lender, and any debt you take on is a considerable obligation. While a mortgage is unavoidable for most, a bit of modesty makes it possible for people to pay off a house and live without that debt. (And maybe even save some money to help your kids get houses without debt?)

   We often hear that it is worth it to go into tremendous debt for a house because the value of real estate will grow. While that is often the case, there is no guarantee of the future. Real estate markets can crash, neighborhoods can deteriorate, and if you stretched your borrowing power to get in, you could take a huge loss if you tried to get out.

   While a debt-free lifestyle is a dream for many, it is possible for it to become a reality.

3. Adjustable Rate Mortgages
   
   Mortgages with adjustable rates can be a good deal if interest rates are high. When rates go down, your payment will automatically go down. But if rates are low, when rates go up your payments will too. The problem is that nobody has a crystal ball. We don’t know what rates will do. So why not lock in a fixed rate, and if rates plummet you can refinance later. (A.R.M.s are not always a bad decision, especially if you plan on staying in town for just a few years, but get good counsel and don’t rush in!)

4. Rushing In
   
   The purchase of a home is a major investment, the biggest investment most of us will ever make. It’s better to live in an apartment for a few months than to rush in to a house just so you can get one. Take the time necessary to figure out the finances, study the neighborhoods, and get a good home inspection so you can know what you’re getting into and so you can act with confidence.

5. Expecting too much growth
   
   A law of real-estate is that a homeowner always thinks his house is worth more than it is. You hear the stories of peoples’ homes skyrocketing in value and you assume that that’s what’s happening to your value. Not necessarily. In Rochester, while values go up in general, the move up slowly and plateau often. Don’t expect to flip a house for a great profit in a couple of years (unless you got a great deal to begin with.)

6. Over-upgrading

   People will often buy a home and borrow extra money to upgrade the things they didn’t like: the kitchen, the master bathroom, the basement. But beware: unless you do most of the labor yourself, your investment in your house rarely returns what you put into it (in the immediate term.) Unless you plan on staying at that house for a number of years, you are likely to lose money on most upgrades.

7. Ignoring Radon

   The geology of Western New York is ideal for radon to creep into your basement. But we ignore it because we can’t see it. Radon is a radioactive gas that is known to cause lung cancer. A test that costs less than a hundred dollars can tell you whether radon is an issue in your home. And if it is an issue, the $1500 for a repair is worth it.

8. Avoiding Realtors When buying a home, a realtor usually doesn’t cost you anything directly. Their services can be very valuable. They are trained professionals that can help answer many of your questions and guide you through the complex home-buying process.
9. Not getting an Inspection You probably expected this one on this site! But I’ll make my plug anyways – Home Inspections are worth it. You spend many tens of thousands of dollars on a house, and a home inspection is a relatively small cost to uncover issues that could drain away your investment. While it is not legally necessary to get an inspection, a couple hundred dollars now could save you thousands down the road.