Buying an Older Home? Watch Out for These Red Flags

Contractors may have cut corners to save costs during previous renovations and these may create problems later on. While you should insist on a full inspection before you buy any home, it’s even more important when buying an older home. Apartment Therapy suggests that you get a structural engineer to do an inspection as well.

According to Money Crashers, visible cracks in walls or floors may be a sign of structural or foundation problems. This is even more likely in an area with lots of seismic activity, soil moisture or unstable bedrock.

Money Crashers says that another sign of possible structural damage is doors that keep jamming or won’t latch properly, and windows that keep getting stuck.

Many older homes have single-pane windows, but as WiseBread points out, these are about as energy-efficient as leaving the windows open. Replacing them with double or triple panes is expensive and time-consuming but has the benefit of huge savings on your hydro bill over time.

Old electrical systems can pose a major fire risk. Money Crashers says that electrical wiring installed before 1960 lasts about 70 years, which means it’s due for an update very soon. Electrical service panels and circuit breakers can deteriorate too and may also be too small to deal with all your modern appliances.

As WiseBread says, older homes tend to have only one or two electrical outlets per room. Using extension cords is a temporary solution, but these pose several hazards. In Canada, each new electrical outlet costs around $200 to install.

Apartment Therapy suggests that you invest in lead testing since lead paint can cause serious health problems. In Canada, the first legislation to regulate the lead content of household paints came into being only in 1976. That means that older homes are likely to have at least one coat of paint containing dangerous levels of the toxic metal.

According to Health Canada, asbestos was used for insulation and fireproofing in the country’s homes until 1990. It’s also found in construction materials such as tiles, house siding, cement and plaster. It can cause cancer, asbestosis and other serious illnesses. Canada is planning to ban all materials containing the mineral by 2018.

Radon is a radioactive gas that can increase the risk of lung cancer, according to Health Canada. Radon exposure causes about 16% of lung cancer deaths in Canada. It can enter the house through any opening where the house is in contact with the soil, such as cracks in the foundation.

Money Crashers says that termite infestations can cause severe damage to any wooden components of your home, including floors, drywall and structural supports. These insects are common in the southern parts of Canada and especially along the coasts.

Signs of termite damage include hollow-sounding wood; discolouration, bubbling or warping of wood surfaces; flakes of paint, wallpaper or plaster on the floor and termite mud tubes.

Musty smells, according to Apartment Therapy, can indicate the presence of mould or mildew. These can cause respiratory ailments and allergies and may also lead to structural damage to your home. Musty smells can also indicate the presence of mice while an ammonia-like smell can be a sign of a rat infestation.

Leaking water can seriously damage your home and the excessive moisture can encourage the growth of mould and mildew. Money Crashers suggests that you ask the seller about the age of the plumbing system and the type of materials used.

Also look for signs of water damage, such as bubbles on the ceilings underneath the bathroom, brownish stains on the ceiling and a wet basement.

According to The Balance, popcorn ceilings were common in homes built between the 1930s and the 1990s. These textured ceilings are not only ugly but may contain asbestos. Removing them is labour intensive, since they have to be scraped off.

WiseBread points out that uneven steps or sidewalks are a tripping hazard. They can also be an indication of structural damage.

While some older homes have asbestos-containing insulation, others don’t have any insulation at all. WiseBread says that the initial cost of adding insulation to your home can be thousands of dollars but you can recover it within a few years in the form of savings on your energy bill.

Money Crashers says that water heaters typically last for 10 to 15 years, furnaces for 15 to 30 years and air-conditioning units for about 20 years. Replacing them when they fail can be an unexpected cost.

According to Money Crashers, refrigerators can last around 15 to 20 years and washers and dryers last 10 to 15 years. Outdated appliances may break down when you least need it, pose a fire hazard and are less energy-efficient than newer models.

Money Crashers says that warning signs of potential problems with the roof of an older home include missing or broken shingles, crumbling roof cement, sagging gutters, moisture in the attic, signs of water damage and animals, insects or birds in the attic or upper crawlspaces.

Previous homeowners may have started renovation projects and then ran out of money or patience and, as Money Crashers points out, these unfinished projects can be unsafe. Finishing them or repairing the damage they may have caused may cost you more than expected.

While it may sound like a bit of a status symbol to live in a house that’s been classified as a heritage building, WiseBread says that this can mean higher renovation costs. It also limits you in terms of the renovations you’re allowed to do.