Water can damage drywall, weaken a house’s structure and lead to mold that can endanger the health of its occupants. If a house has had water damage, it may still have problems years later if the source of the damage was not addressed or if repairs weren’t performed correctly.
Ask About the House’s History
Laws on what sellers are required to disclose to prospective buyers vary by state. If past water damage wasn’t mentioned in the seller’s disclosure, ask (or have your real estate agent ask) specifically if the house has ever been damaged by water. If the answer is yes, you will need to ask follow-up questions regarding the source of the water, how much damage it caused, what types of repairs and restoration work were done, and who performed and paid for the work. You should also request any related documentation, such as inspection reports, photographs of the damage and invoices for repairs.
Get a Professional Assessment
Have the house inspected by someone who has experience dealing with water damage. That person should be able to tell you whether the water damage was fully addressed and if the underlying problem was remedied. If there are any remaining water-related problems, such as mold, an inspector should be able to find them and bring them to your attention. If the inspector tells you that the house needs repairs to address water damage, ask for a detailed list of the work that needs to be done and request estimates from several local contractors.
Think About Insurance
Water damage is one of the most common reasons for homeowners insurance claims. If a house was damaged once due to a burst pipe or a leaky roof, an insurance company might be unwilling to issue a policy due to concerns that the problem might happen again, or the company might charge exorbitant rates. Contact several insurers to ask if they would be willing to issue a policy for the house and, if so, how much the premiums would be.
If the house was flooded in the past and it’s located in a floodplain, you would likely want to purchase flood insurance if you bought the property. Remember, flood insurance would be separate from homeowners insurance, meaning it would be an additional expense.
Should You Make an Offer?
Once you have all the necessary information, you can decide whether you’re still interested in the house or whether it would be better to keep searching for a new home elsewhere. If you choose to make a bid, you will need to know the house’s fair market value. Your real estate agent can give you a figure based on the recent sale prices for comparable homes in the area. Then, you can deduct the cost of repairs from the asking price and submit an offer for that amount (or less to give yourself room to negotiate). Another option is to ask the seller to perform specific repairs before closing as a condition of the sale.
