7 Ways First Time Home Buyers Can Avoid a Money Pit

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Buying a home can be confusing for first time home buyers. If this is you, then you may have concerns about buying a home. Is worth it? And how do you avoid investing hard earned money in a money pit? Here are seven tips for a first time home buyer to consider.

1. Head to the Basement - The idea here is to look for evidence of how well the house is built- the quality of construction. It even discloses the age of the HVAC, plumbing, and electrical systems. You will easily be able to see what needs to be updated, and how well its been maintained. It's important to note the condition of these systems because they are costly to repair.
2. Check the Foundation - You don't need a engineer to do this. Check for tell-tale signs. Outside, note the distance of large trees from the house. Larger trees that are closer to the house can crack the foundation over time. Inside the house, look to see if there are separations or gaps in the flooring or drywall, especially the corners.
3. Look for Water Damage - Water can damage a house more than anything else. Start with the bathroom and the kitchen to look for signs of water damage. Be sure to check the caulking around the sink and the seals around the windows where water can seep in.
4. Go House Hunting During Bad Weather - This presents obvious challenges, but house-hunting during a rain storm will allow you to see how the house endures during bad weather and real-world weather conditions.
5. Ask the Neighbors - It's never too early to get friendly with the neighbors. Ask the people next door about the house you are interested in. The amount of information that you can uncover is surprising – when it was last painted? Maintenance? Etc.
6. Cosmetically Pleasing is Better - The cosmetics of a house can be changed, but if you don't like the style of a home keep looking. Renovating a home, even for cosmetic purposes can be costly.
7. Ask Yourself Two Questions - Does the style of the home fit the house? Do I like this style? Don't downplay aesthetics. It can lead to purchasing a money pit even if there is nothing structurally wrong with the house.

Over the long run, buying a home can actually save you money, as long as you invest wisely.

A home inspection is a great tool for first time home buyers. The minor cost of a full inspection can save you a lot of hassle and money later. Remember: an appraisal in not an inspection.

Download "The Essential Guide to Buying Your First Home" to learn more about what it takes to become a first home buyer. Get your free copy at the button below.

(water damage: Flickr user Banjo Brown)