Factors to Consider in Buying an Older Home
There is a certain charm about older homes that captivates the interest of many people. Perhaps it is because of the ‘nostalgia’ factor–’Look Jim, this is just like the home my grandparents use to live in!’ In fact, the first home for many young people might, in fact, be their grandparent’s home! As well, there are people who seek out these older homes as a ‘renovate and restore’ project. Still others are drawn to them because of their dislike of the ‘burbs.’
Whatever the reason, there are certain questions that must be asked in advance of a purchase that will avoid a lot of heartache down the road. First, does the home have lead water pipes leading into it? Edmonton has recently noted that a certain percentage of older homes are displaying a significant level of lead in their water. They have suggested getting the water tested to determine the levels of lead, running the water before usage to flush the lead out and, perhaps best of all, replace the lead pipes altogether [with the homeowners portion ringing in at about $5,000.
Second, does the home have asbestos insulation [including vermiculite] or floor tiles or siding or heating tape? Left undisturbed, the problem may not be particularly dangerous. But once asbestos is disturbed and becomes airborne fibres, the risk is significant. If renovations are probable, a professional company should be hired to safely remove all asbestos from the home?
Third, is there significant carbon monoxide leakage coming from cracked insulation in the existing furnace? Even if the levels are insignificant, a carbon monoxide detector should be properly installed and an annual furnace check scheduled to offset this serious problem.
Fourth, has the electrical service been upgraded to 100 amps? It is difficult to get home insurance on a home with a 60 amp service, for example. Upgrading this to acceptable levels can be costly.
Fifth, if renovations or additions have been done by a previous owner, have all of the necessary permits been secured and were they followed up by a proper inspection by the City of Edmonton? If not, why not?
Finally, does the home come complete with a current Real Property Report with a City of Edmonton compliance stamp attached? This document is absolutely critical to the peace of mind of the new owner to say nothing about the financing company that will require it! If the new homeowner has to supply it and problems are identified by the survey company or the city compliance branch, the costs to remedy the situation can be substantial.
It is better do your due diligence in advance than face the surprises that may surface after the deal has closed!
