We all hear that every market is different when considering a resale home. Let’s continue on that theme – looking at existing homes in Colorado is not like looking at existing homes anywhere else. From swelling soils to Colorado water rights, the resale home market here is unique.
It is elemental but important to say that once a new home has been sold and occupied, it becomes a used or resale home. Here we present the positives and negatives of considering any resale home for purchase in Colorado.
The positives of buying a resale home (note that everything in this list is pretty easy to discover):
- The house is usually in an established neighborhood.
- Landscaping is often mature and complete or complete enough.
- Might even be available for move in immediately.
- If newer, it may have some limited warranty remaining.
- Could have upgrades or favorable alterations at a good value.
- Is in a location that is perfect for the buyer.
- We all love a deal. May be a foreclosure or short sale and offered at a “steal.”
The negatives of buying a resale home (most things in this list are a challenge or even impossible to discover):
- Was it constructed properly?
- Were adequate soil tests conducted on the lot? (ask around, this is a big deal in Colorado)
- Has it been maintained or just dressed up for the sale?
- Has it been tested for radon?
- Are there water or drainage issues on the lot?
- What secrets is the home hiding from everyone involved? Things like slow water leaks inside of floors or walls, feeding black mold.
- If on a well, does it have a well permit? – If septic, has the system been abused?
- Usually no real warranty.
- Sanitary issues such as previous pets, carpets, toilets etc.
- Is it energy efficient and comfortable to live in or will you be looking at high energy bills, 30K in new windows, adding insulation, and wearing a coat inside on a cold windy Colorado night?
- If a short sale or foreclosure, is often difficult to place under contract, difficult to close, and offered only on an “as is” basis.
- Does pricing of the resale home reflect the updates the home needs? Was that taken into consideration in the pricing, or is the seller hoping you or your agent won’t think of that and do the math?
- Does the layout and floor plan make sense for the way you live, or is it obsolete?
- Everything in that house was picked out by someone else. Was that person your twin, or are you making huge compromises? “I’ll change it later” you may hear yourself saying.
- You will need a Realtor to see the inside of the house, not always convenient. Revisiting is also a challenge.
The takeaway in presenting the information above is that buying a used house is not bad, per se. If a person finds the right one, resale houses can be great buys. But if anything, the list above demonstrates the huge number of unknowns involved in buying a resale home. Finally, each one of these negatives are based on real world scenarios I have encountered more than once over the years. Call on an expert for much more help and information, call Greg Tomlinson today.