How to
Avoid a Money Pit.

Leaks are the most common problem with roofs, and they are tough to detect from the outside. However, from inside the attic, you can often see water marks or discoloration on rafters and insulation where there is an active leak. Replacing a roof structure can be a massive expense.

Make sure you are confident that both water systems—the one that brings fresh water in and the one that takes sewage out—are functioning well before signing on the dotted line. Look for low water pressure, leaks around fixtures, and old galvanized or lead piping.

Before you agree to buy, you should make sure that you can run all of the appliances you want to (and even power tools) at the same time without having a power failure or tripping breakers. You also want to make sure that the electrical system is safe, up-to-code, and does not present a fire hazard (e.g. outdated knob-and-tube or aluminum wiring).

Be sure to thoroughly inspect the heating and air conditioning systems in any home you are considering purchasing. Check the age of the furnace and AC compressor unit, look for maintenance tags, and turn them on to listen for loud noises or uneven heating. Replacing a furnace or HVAC system can run into thousands of dollars.

The paint inside and outside the house can reveal a lot about the condition of the underlying material. Dampness, peeling paint, or soft wood can indicate moisture leaks or wood rot. Check several places on several walls, using your eyes and a screwdriver to test for structural soundness.

Cracks in walls, doors not closing properly, and uneven floors can all be signs that there is a structural problem with the foundation. If the foundation is not strong, the entire house could literally collapse. A bad foundation may not mean imminent disaster, but it could be used to bargain for a lower sale price, or you could ask to have the owner repair it before the sale.