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Things to Consider Before Buying an Old House
By Kellan Jansen MONEY RESEARCH COLLECTIVE
Purchasing a home is a major milestone in many people’s lives, but rising real estate costs make it increasingly difficult for the average person to afford a home. This has led many prospective homeowners to consider buying an old house to refurbish or rebuild. Old homes also have undeniable charm. However, if you’re thinking about purchasing an old home, there are some things to consider first.
This guide covers everything you need to know while shopping for an older home to help you decide whether this kind of real estate investment is right for you.
What is considered an old house?
When you think about cheap old houses, you might imagine a tumble-down shack built in the early twentieth century. But that’s not always the case.
Usually, an “old” home is at least 50 to 100 years old, but the truth is that there is no magic number of years that a house must age before it’s considered old. Instead, it’s more helpful to consider the expected lifespan of major components of the home, such as the roof, plumbing or electrical work. For example, a home’s roof can last between 15 and 25 years. If a house’s roof was just replaced, it might be priced like a newer house, even if the foundation was laid 50 years ago.
Many old homes might qualify as “fixer-uppers” — homes that will require significant work before you can move in with a family — but not every older home needs repairs before it’s move-in ready.
The pros and cons of buying an old house
There are pros and cons to purchasing an old home. Many are common considerations for most home buyers, but your personal list may vary.
As you evaluate these pros and cons, remember that each criterion’s relative importance is up to you. For example, you may be intent on finding a large home. If that’s the case, an old house may not be suitable for you because of the up-front work required, even if you can save a hefty amount by purchasing one.
A list of pros and cons is a starting point for your home shopping process, but the decision to buy a home is ultimately personal. You can’t necessarily add up all the pros and cons of buying an old house and proceed based only on whichever list is larger.
Things to consider when buying an old house
The conditions of old houses that real estate agents show you can vary. Some will require more significant upgrades than others. The home inspection process is important for evaluating how much work an older home needs. With that in mind, here are five things to consider when buying an old house and conducting inspections.
The age and condition of the house’s major systems
Each major system in a home is expected to last for a certain amount of time. When you reach the end of the system’s lifespan, repairs become more frequent, and it may eventually need replacing.
Here’s a list a house’s major systems and how long they typically last:
- Electrical: 40 to 70 years (but replacing sooner may be recommended)
- Plumbing: 20 to 70 years (depending on the pipe material used)
- HVAC system: 10 to 20 years
- Foundation: 80 to 100 years (newer foundations can last 100+ years)
- Roof: 15 to 25 years, or up to 70 years if it’s made of metal
While you shop for old homes, consider the age of each of these systems to help determine whether you need to replace them soon. The condition of each system also matters because components that have been poorly maintained will need to be replaced sooner. When you consider the cost of an older house, factor in the potential costs to repair or replace home systems.
Hazardous materials that might be present
Historic homes were often built with materials that are no longer considered safe today. Lead and asbestos are the two most common hazardous materials found in old homes. Lead-based paint was often used as a pigment and drying agent, while asbestos was used in insulation, floor coverings, siding, ceiling tiles and other building materials.
The key date to keep in mind for these materials is 1978 — the year the U.S. Congress passed a law banning the usage of lead and asbestos in residential homes. If you’re looking at homes constructed after this date, they’ll be much less likely to contain lead and asbestos. For houses built before 1978, it might be worth having it checked by a professional.
Older homes are also at increased risk of containing mold. This is because houses built in the 1970s and earlier typically have worse ventilation and air circulation than modern homes, even if they have many windows. Make sure your home inspection checks for mold before moving your family into an old house.
Potential structural issues
Older homes are more likely to have structural issues with their foundations. These problems are especially common for homes built before the 1940s, which is when home builders began consistently using modern concrete slabs.
Structural issues can be very expensive and time-consuming to fix. In addition to being caused by the passage of time, issues such as erosion, earthquakes and even growing roots from trees can cause structural problems.
As you shop for an older home, pay attention to warning signs such as:
- Uneven floors
- Slab leaks
- Cracks in interior and exterior walls
If you notice any of these signs while inspecting a house, there’s a greater chance that it’s experiencing structural issues. Before purchasing, have the house inspected by professionals with trained eyes to discover issues.
The presence of toxic gasses, including radon
Watch out for the presence of toxic gasses when shopping for old homes. Carbon monoxide issues are more common in old houses because they often have old chimneys and furnaces that won’t filter the air properly without repairs.
Radon is another common gas found in old homes. It’s colorless and odorless, which makes it impossible to spot without testing. That’s why most housing authorities recommend that all homes be tested for radon every two to five years.
It’s worth noting, however, that the danger posed by radon varies based on where the home is located. Radon is released when uranium decays in certain types of rocks and soil. If a home is built in an area without rocks that release radon, you may not need to worry much about radon exposure.
Cost of repairs
Old homes — especially those available for a bargain — typically come with long lists of needed repairs. It’s important to understand how much these repairs will cost before moving forward with the purchase of a historic house.
The best way to evaluate a home’s potential repair costs is to have an expert conduct a walkthrough inspection. This should be someone who works in the home repair industry and understands the intricacies of old homes. One possible choice is to hire a professional home inspector even before the official inspection takes place. They’ll evaluate the home’s damage and give you a clearer understanding of what your repair bill might look like.
Important questions to ask when buying an old house
Hopefully, you haven’t been fully dissuaded from purchasing an old house. If you still have questions, here are some to consider during your search.
Are there any foundation issues?
Foundation issues are one of the most expensive repairs that an old home may need. If a house has foundation problems, it could become a safety issue that must be repaired before you can move your family into the home.
The good news is that foundation issues are rarely irreparable. There’s almost always something a foundation specialist can do to save the home. Just consider how much the problems will cost to fix and ensure the price you pay for the house reflects those extra costs.
How old is the plumbing system?
Check on the age of the home’s plumbing system before you purchase it. The lifespan of a plumbing system depends on the material used for piping.
- Brass: 40 to 70 years
- Galvanized steel: 20 to 50 years
- Copper: 50+ years
- Cast iron: 75 to 100 years
- Polyvinyl chloride (PVC): 100+
Galvanized steel and copper are the most common piping materials in older homes. If an old house has PVC plumbing lines, that’s typically a sign the plumbing has been recently updated.
How old is the electrical system?
It’s important to find out the age of a home’s electrical system. Most electrical systems last between 40 and 70 years. However, exposure to heat and UV rays can decrease the expected lifespan of an old home’s wiring.
The cost of rewiring a whole house can cost upwards of $10,000 to $30,000. If you believe electrical repairs are needed, then your purchase price of the home should reflect those extra costs. You may want to reach out to several electrical companies for quotes before moving forward with the repairs.
What is the condition of the roof?
You should evaluate the condition of a home’s roof for the same reason you should evaluate the home’s electrical and plumbing systems. If a roof needs to be replaced, you should factor that cost into your purchase price.
Replacing a roof can range from $5,000 to $10,000 or more. It will depend on the style of roof you want, the cost of labor in your area and how difficult it is for the workers to remove your old roof. A metal roof will be much more expensive than an asphalt roof, but it almost certainly will last a lifetime.
Do you have the maintenance records on hand?
When deciding if buying a house is a good investment, you need to know the home’s history to make an informed decision. Without clear maintenance records, predicting the future costs of repairing a historic house is much more difficult. A home inspection conducted by a professional can give you some insight into the condition of an old house.
Unfortunately, these inspections are not always as thorough as they should be. It’s possible even for experienced professionals to miss critical issues. For this reason, some people advise against purchasing a home without any maintenance records, but this is a decision you need to make for yourself. If you end up buying a home without maintenance records, you may want to plan for extensive repairs to be safe.
Buying an old house vs. a new house: Which is right for you?
There’s nothing quite like the feeling when you find a house for sale that you truly love. But if it’s an old house, it could require extensive repairs. So should you buy the old house, or is it better to look for a new one?
The answer will depend on what you’re looking for in a home and how much work you’re prepared to take on as a new homeowner. If you want a home with a sense of history and unique charm, purchasing an old house could be a good idea. Be diligent in your research and thoroughly tally repair costs before proceeding.
However, if you want a home that you can move into right away, buying a renovated old house or a newer residence is likely a better fit. Just be prepared to pay more for the newer home in exchange for this convenience.