As a realtor, I see a lot of homes and negotiate contracts almost daily. I take pride in saying that I believe ALL of my clients have made sound decisions and ended up with a home that was a good investment. A good investment is one that prepares them for a successful future and will hold or gain value. A good home investment is also not a money pit and provides years of happiness, not headache. 

I have had the opportunity to work with a variety of buyers and have yet to find one that has not found my knowledge very useful. Real estate is what I do and I take my job very seriously; ultimately, my clients happiness is in my hands. 

Working with a knowledgeable realtor is essential when considering buying a home or homes. Whether a first-time home-buyer, repeat home-buyer or an investor, having a realtor that advocates purely for you and gives you trusted guidance is essential. If your realtor is not able to do this, it can cost you BIG. 

That said, I am providing a list of conditions I advise my clients to consider when making a good investment decision. This is not an all-encompassing list, but a great start when searching for the right home and a sound investment. My main focus are conditions that work AGAINST a property being a good investment. 

DO NOT choose the property if any of these conditions exist:

1. Any side of home is located by a busy street or in close proximity to major freeway/road/street/thoroughfare. 

2. Located by a commercial structure or apartment complex. 

3. Has extensive foundation problems or needs extensive foundation work. If home has had work completed, get a copy of the warranty, diagram of where pilings were placed and understand the conditions of transferability. Research the company that completed the work as well.

4. Has a roof older than 15 years (insurance rates will likely be higher). Seller needs to replace prior to closing.

5. Has shoddily completed work around the house. This can be indicative to how they have kept up the home maintenance. 

6. Has bad drainage. This could lead to significant foundation problems over time, not to mention insects and a muddy mess in your yard. 

7. Located by drainage areas, like ditch, gully, bayous or retention areas. This may not make the home in a flood plain, but can still put the property at risk for future flooding. 

8. Has a pool that has decking that is near the house structure or decking that slopes back towards the house. 

9. Has a termite infestation, unless treated by a reputable pest control company with a transferrable warranty. 

10. Has plumbing drainage problems or weak water pressure. This can be indicative of corroded or blocked pipes and can be very costly to remedy. Assess risk with inspections, including a hydrostatic test in older homes (owner permission required). 

11. Has knob and tube wiring, as this can be a significant fire hazard. Only pursue this type of property if you intend to have the wiring completely replaced. Some properties also have aluminum wiring and can be a costly problem and be the cause of increased insurance rates, as well as deny coverage at time. 

12. Has an addition that has been built on the home and does not match the original structure. 

13. Has a garage that has been converted to a room or the garage space has been compromised by any structure. People like their garages in Texas and this will only add value if it is usable. 

14. Has a utility easement in the back of the property that takes up a large part of the back yard. 

15. Has a pool that needs extensive work, unless this is a cost that is acceptable. Keep in mind, a pool with lack of maintenance, is often indicative of a home with lack of maintenance. 

16. In a flood plain or has EVER been flooded. Insurance rates will be elevated for this reason. This is a non-negotiable in Houston and surrounding areas. 

17. Has a very strong smoke odor. This is incredibly difficult to remedy, can be very costly and success is never guaranteed, not to mention the health hazards that exist. Odors do not lie. 

18. Located in close proximity to a registered sex offender.

19. In a high crime area. (All buyers need to research areas on their own, as realtors cannot advise about how much crime is in any particular area - it can be considered steering, which is a BIG no, no).

20. Located by a waterway: ocean, bay, lake or river. Erosion is a real concern in these areas, not to mention flooding. You want to make sure your home will be there for years to come. 

21. Located on a fault line. Yes! Fault lines in Texas. We actually have quite a few in Houston and surrounding areas. Make sure you check mapping before purchasing properties in these areas. We may not be at a big risk of a major earthquake, but these areas would have more soil movement than others.

22. Located near an airport or in a flight path. 

Other considerations for a good investment:

1. Is the property zoned to good schools? Schools drive value. Following this guidance can give you security that your child will receive a good education and your home will help assure your property will retain its value. 

2. Is the property located on a high traffic street? This included homes across from schools, particularly loading and unloading zones.

3. Is the property located across from a park? This can be a good and bad thing. It depends on who uses the park and how safe it is. You don't want to be across from a park with late night traffic or hang-outs for people up to no good. 

4. Is the property located near a water source? This can also be a double-edged sword. Is the area maintained? Does it attract insects? Who frequents this area?

5. What is the tax rate in the area? This can have a huge impact on your monthly payments. The lower the rate, the more freedom you have with your budget.

6. Is the property located in a MUD? This stands for a Municipal Utility District and this entity is responsible for water and sewage in designated areas. The rates are often very high in new neighborhoods and can vary from year to year. They usually decrease in newer neighborhoods, as the neighborhood is built out. 

7. What are the Homeowner's Association (HOA) fees? How often are they assessed and paid? What is covered with these dues? What are the amenities of the community? What are the community restrictions? How strong is the financial security of the HOA? Are there assessments the owner owes? Who are the principals in the HOA? Is a property management company in charge of the HOA responsibilites?

Wow! So much to think about, right?

Trust your first impression and instinct; they are usually accurate.  Hopefully, you will be walking by my side when you are making this important decision. If not, best wishes with your home search. This should give you a good start. (Call Melissa Mims for questions or advice, 281-433-9153)

All of my clients will likely find this list very familiar, as these are the things I point out while viewing properties. 

If you are interested in working with a realtor that will protect, give sound advice and advocate for you, please contact me anytime. As if you don't know by now:), Melissa Mims for questions or advice, 281-433-9153.

Melissa Mims, 281-433-9153, melissa@loopyliving.com

www.melissamims.com

www.loopyliving.com

www.har.com/mmims

This list was compiled as a good rule of thumb reference, but each home my have special circumstances in which buyers may need to consider exceptions. 

If you found this post useful, please comment and let me know. If you think of any other conditions that may be helpful for buyers, please make sure to leave comments. We are in this fight together:). Thank you so much for visiting my blog!

The aforementioned information may not be used or reproduced without the express, written consent of Melissa Mims, Real Estate Broker, RE/MAX Exclusive, Houston, TX.