How Do You Avoid Buying a Money Pit in St. Cloud?

The short answer: Check the paperwork before you tour. Walk the home with a full-time, experienced agent. Then order the right inspections, not just the basic one. And when the report scares you, get a licensed contractor's price before you walk away. Most money pits give themselves away early if you know where to look.

I have helped people buy homes in Central Florida full time since 2001, and I live in St. Cloud. Here is the checklist I use with my own buyers.

What a Money Pit Really Is

A money pit looks like a good deal. The trouble is hidden past what you can see. Here's one I'll never forget.

It was an older home near downtown Orlando, the same kind of house you'll find in downtown St. Cloud. It was cute. It had charm. The seller had updated everything you could see. But not the big things. Behind the walls, it had old cloth wiring mixed with aluminum wiring and a Federal Pacific electrical panel. The drain lines out to the city sewer were old cast iron. The AC was new, but it was installed wrong in the attic and blew air poorly through the house. The windows were single pane, and there was very little insulation.

To the untrained eye, it looked beautiful. The inspections told the real story. We went back to the seller with the reports and repair estimates. The seller paid about 80% of the repairs, and my buyers paid the rest. They closed, and they love that house today. It's in the location they wanted, with the charm they wanted.

That's the lesson. Sometimes it's better to deal with what's in front of you than what you don't know. A money pit isn't a house that needs work. It's a house where you don't know what the work is.

Normal upkeep, like new gutters or an old dishwasher, doesn't make a home a money pit. The big ones are the roof, plumbing, electrical, AC, windows and insulation, plus termites, mold and a foundation that's moving.

Check the Paperwork Before You Tour

Listing photos are online dating. They show the best angle, the best light and nothing else. Before I show a home, I check what the photos don't tell you.

The roof

If the listing doesn't say how old the roof is, I look at the aerial photos and the current pictures. A trained eye can often spot hail damage, storm damage or peeling shingles, sometimes even from the road. An older roof can raise your insurance premium or limit your choices of insurer.

The tax bill vs. the listing

This one has saved my buyers more than any other check. I once saw a listing that said 4 bedrooms and 3,000 square feet. The county tax records said 3 bedrooms and 2,500 square feet. The "fourth bedroom" was an enclosed lanai with no closet.

A room without a closet is usually treated as an office or flex space, not a bedroom. Worse, a lanai that's been closed in can be work done without a permit. That can cause trouble with the appraisal and with insurance. So I check the permit history, too. If the listing and the county don't match, I want to know why before you fall in love with the house.

Flood zone, insurance flags and time on market

• Flood zone. Look up the property on the county records and the FEMA flood map, especially in an area you know has flooded before.
• Insurance red flags. An older AC, polybutylene pipes, or a roof over 12 years old can push insurance costs up. I break down what those cost in St. Cloud vs. Orlando: how much more house for the money.
• A year on the market with no price cuts. That usually means the seller set the price, not the agent. It doesn't mean the house is a money pit. It does mean you should ask more questions.

What to Notice When You Walk Through

Some smells are a paint job. Others are a warning. Learning the difference saves you money.

• A musty smell. Stop and take it seriously. It can mean moisture or mold, and that needs to be checked.
• Tiny "coffee grounds" on the floor. Little grains near doors and windows can be termite droppings. In an all-wood home, that's a major red flag.
• Floors that slope or sag, and windows that won't close. These can mean the house has settled.
• Drafts and hot rooms. Drafty windows and thin insulation mean high power bills every month.
• Smoke or pet smells. These soak into walls and ducts. Fresh paint, new AC filters, and cleaned and sanitized ducts usually take care of them. Annoying, but fixable.

Older homes downtown

Many early-1900s homes in downtown St. Cloud are built of wood and sit on footers with a crawl space underneath. Homes like these settle over time. Floors can slope or sag in spots. The good news is this can often be fixed from underneath by leveling the floor or adding foundation piers. The bad news is that buyers who don't know this work can get badly overcharged. Get more than one price from licensed, insured contractors.

Older homes can also have lead-based paint or asbestos. For any home built before 1978, the seller must give you a lead paint disclosure, and you have the right to a lead inspection, usually within 10 days. In some parts of Florida, ground movement and sinkholes are a concern, too. Ask your insurance agent whether sinkhole coverage is included, because full sinkhole coverage is usually an add-on, not standard.

If you love the charm of downtown, see the area in my guide to the best neighborhoods in St. Cloud.

Acreage, well and septic

Many homes on land around St. Cloud have a well and a septic system instead of city water and sewer. Have the septic pumped and checked, including the drain field. In my experience, that runs about $350 to $400 or more, and the buyer usually pays for it. Have the well water tested for harmful bacteria, too. For more on buying land here, read my guide to buying land in St. Cloud and Osceola County.

New Construction Can Be a Money Pit, Too

A brand-new home feels safe. But builders build fast, and the builder's own people approve the work. I have had new homes with windows that weren't fully sealed, gaps in the insulation, leaks, and debris left in the drains by the crews.

Hire your own independent, licensed and insured home inspector for a new build. A good one uses a thermal camera and a moisture meter to find what your eyes can't. Florida licenses home inspectors, and you can look up a license on the state's website before you hire.

The Inspections to Order

When you call an inspector, they'll ask, "Do you want just the inspection?" Most buyers say yes, because that sounds like the whole job. It isn't. Here's what I tell my buyers to consider:

• Full home inspection. The whole house, top to bottom.
• 4-point inspection. A short report on the roof, electrical, plumbing, and heating and air. Many insurers ask for one on older homes, often 20 years or older.
• Wind mitigation. Usually optional, but it often pays for itself. It shows features like how the roof is strapped to the walls, and Florida insurers have to offer discounts for features that reduce hurricane damage.
• WDO (wood-destroying organism). Checks for termites, wood-boring beetles and wood rot. A good inspector who sees signs will stop and call you if you didn't order one.
• Mold. Mold is not part of the WDO report. If you smell it or see it, order a separate mold check.
• Septic and well. On any home that has them.
• Radon. Florida requires a radon notice in sale contracts. Ask your inspector about testing.
• Sewer scope. Worth it on older homes with cast iron drain lines, or in areas with known sewer problems. A camera goes down the line so you can see its condition.

When the Report Reads Like Armageddon

Home inspection reports are written in careful, legal language. They're full of red text and highlighted items. To a first-time buyer, it can look like the house is falling down. You read it and think, "That's $30,000 in repairs." In real life, it might be about $1,000 with a good handyman. That's an extreme example, but it's not far from the truth.

So here's the order I follow with my buyers:

1. Get a second opinion before you cancel. Have a licensed, insured contractor review the report and price the real repairs. Do it inside your inspection period. It's a short window, so line up the contractor before the inspection happens.
2. Separate cosmetic from serious. Paint and fixtures are cosmetic. Anything that affects safety, the structure or your insurance is serious.
3. Ask the seller to fix it or credit it. I send the listing agent the report and the estimates. We ask the seller to make the repairs before closing, done by licensed and insured pros, with permits where needed and receipts. Or we ask for a credit or a lower price. Some lenders limit repair credits, so we check with yours first.
4. Walk away if you can't agree. No agreement, no deal. That's what the inspection period is for.
5. Get it all in writing, and check it before closing. Repairs are confirmed before you close. Sometimes the contractor can be paid at closing, so the money goes straight to the work. Your lender and title company have to agree to that.

One more thing. Some insurance companies will write your policy, then send someone out after closing to confirm the repairs were done. If they weren't, your premium can go up. So don't skip the follow-through.

Your First Step

Before you make an offer, walk the home with a full-time, experienced agent. A seasoned agent will spot many of these problems on the first visit, before you spend money on inspections or get your heart set on a house.

That's how I work with my buyers. I walk the property with you. I check the paperwork before we tour. And every offer, every negotiation and every contract goes through me personally. See how I help buyers on my St. Cloud buyer's agent page.

Frequently Asked Questions

Is an older home in St. Cloud a bad idea?
No. Older homes downtown have charm, decent-size lots and often no HOA. They also have older roofs, wiring, plumbing and floors that may have settled. Go in with your eyes open, order the right inspections, and get real repair prices before you decide.

Do I need a home inspection on a brand-new house?
Yes. New homes go up fast, and the builder's own people sign off on them. I have seen windows that weren't sealed, gaps in insulation, leaks and construction debris in drains. Hire your own licensed, insured inspector before closing.

What is a 4-point inspection?
It is a short insurance inspection of four systems: the roof, electrical, plumbing and the heating and air. Many Florida insurers ask for one on older homes, often 20 years or older. It is not the same as a full home inspection.

What does it cost to have a septic system checked?
In my experience, pumping and checking a septic system runs about $350 to $400 or more, and the buyer usually pays for it. Prices vary by company and the size of the tank.

Can I back out if the home inspection is bad?
Often, yes, if you act inside your inspection period. The rules depend on your contract, so read it and ask your agent. Before you cancel, have a licensed contractor price the repairs. A scary report is sometimes a cheap fix.

Cliff Clover, REALTOR® | The Clover Group at eXp Realty, LLC | (321) 320-7129 | Serving Central Florida since 2001. This post is general information and my own experience, not legal, insurance, engineering or financial advice. Repair costs and insurance rules vary by home, company and contract.