When you like the land but not the house

By Alexis A. Acacio, contributor
Inquirer News Service

IN SEARCHING for the perfect home, remember that two critical elements should be present -- the right location and the right house. It can be really difficult to search for one and it requires many weekends of searching, a lot of time and most importantly, a lot of patience. One has to physically visit a place to be able to experience the feeling of living in a specific area.

In home buying, choosing the right location is usually the first step and as soon as you are decided on one, you now proceed with the next level of selecting what type of home to buy. This can be a single detached dwelling, a town home or a condominium unit.

There are four possible combinations of location quality and house quality you should be aware of. During your house hunting process, knowing which situation you are in will be very helpful for you in selecting the site for your home.

Bad house on good site

The bad house might turn one off but the property might just be a "diamond in the rough." As long as the location is acceptable and satisfactory to you, then a bad house can still be considered. A bad house description can be subjective and you might just need a few repairs to convert a bad house into a good one. In assessing a "bad house" always ask two important questions:

• Is the defect curable? There are defects in a house that can be repaired and there are some that are uneconomical to do so. A worn-out rain gutter, faded paint on a wall, a leaking faucet and dried plants in the garden-all of these can be repaired or redone and the house will look and feel new again. On the other hand, if you want a four-car garage when there is only one, a bath in every room when there is only one on the first floor, then curing the defect may mean that you may have to demolish the house and start anew.

• How much will it cost? There is no house defect that cannot be repaired at all. The only problem is that repairing the house may cost you more than tearing the house down and making a new one. If the cost of repair is too high, buying the home may not be viable at all. In buying a used home, never guess the amount of repair costs and it is always best to ask for a detailed estimate of repair from a professional architect or engineer.

Good house on bad site

A bad location for one might be a good location for another and it is really based on the needs and wants of the end user. Unless you are the speculative type, a bad location may be difficult to turn around. There are however real estate investors who invest on currently undesirable locations hoping that the surrounding infrastructure in the area will improve. The only problem with this line of thinking is that one can never be sure when the improvement will take place.

If the house you are planning to buy is in a bad location (based on your own definition), it may be a better idea to stay away from this type of investment.

Bad house on bad site

Forget it! Even if the property is being sold for a song, you may still end up losing money in the end.

In this situation, you have to deal with two defects. It is better to delay your purchase until you can find the home that you and your family will be comfortable living in.


Good house on good site

This is where all buyers would want to be. Finding a good house in a good location may take you several months (even years) but the effort will surely be worth it.

A good house means that it is well built at a reasonable price and with living spaces that fit your specific needs and lifestyle. It has all of the amenities that are important to you and you can easily imagine yourself living in the house.

A good location is one that is safe, convenient, accessible and, most of all, one with a community where you can enjoy life to the fullest. Remember that this community is where you will go home to every day and it better be a good one.