When you are thinking about purchasing a home, you need to consider its value and the numerous factors which will affect it both now and in the future. There is no other way to be sure you are making a sound investment.
Many defects can be repaired (problems with a roof for example, or an unfinished basement). But there are some defects which are referred to as “incurable” in the real estate world. These are issues which are permanent, and which will adversely impact the resale value of the home later down the line.
Following are some examples of “incurable defects” which could make a home less than a savvy investment:
- A home which is close to a busy street or intersection may be undesirable both because of the noise and the traffic.
- A location close to a railroad will bring down the value of a home because of the noise. The same also goes for airports.
- A steep driveway can be a pain to get in and out of, and can be hard on a vehicle. Driveways with visibility issues may also impact a home’s value because they are unsafe.
- If a property is in a floodplain, there is always a heightened possibility that it will be submerged. This impacts its long-term value.
- Properties which are located next to cemeteries may also have a lower property value.
- Being located next to a landfill, scrap yard or recycling facility can bring down the value of a property.
- Homes which are located close to industrial or commercial buildings or zones might also be priced lower. The same is sometimes true with proximity to government buildings or even apartments. Schools and arenas may be problematic as well.
- If unpleasant odors from nearby farms or factories waft into the area where the house is located, that also may reduce its value.
Keep in mind that this is not a complete list, though it does cover a lot. As you can see, most incurable defects have something to do with the geographic location of a structure. You can modify a home, but you cannot modify its environment.
How Much Weight Should You Give Incurable Defects?
If you are totally in love with a certain property, but it is located close to a busy intersection or a train track, does that mean you shouldn’t buy it? That depends on your priorities and your financial goals.
If for example you are probably going to be reselling the house in a few years and moving elsewhere, it would not make a lot of sense to buy a home with an incurable defect. You may have a harder time getting a solid return on your investment.
On the other hand, if you are thinking you will be staying in the home for the next thirty years or more and you do not mind the noise of the busy intersection at night, the incurable defect may not matter so much. Your home at this point is more than a financial investment; it is also an emotional one, and if you love it and know you will be happy there, it may be a great bargain.
Just make sure that either way, you understand how the defect impacts the home’s value. That way you can be sure that you are getting a fair price before you sign on a mortgage.