Potential Complications When Buying A Unique Home
A unique home is any home that is different from most the regular homes you can find across the country. A home may be unique because it has a different designed, is constructed with a rare or special material or it has some other one-of-a-kind property. Buying a unique home isn't easy, however, because you may meet complications such as the following.
Inspecting a unique home requires an inspector experienced in such properties; otherwise, the inspection report may fail to unearth hidden defects. For example, an average inspector may find it difficult to determine the structural integrity of a house built from recycled plastic, which means the inspection report may not be accurate.
Apart from inspection difficulties, unique homes may also feature appraisal difficulties. The main reason for this is because the most common way of determining the fair market value of a home is to compare it with similar properties in the area. Unfortunately, a unique home may be the only one of its kind in the neighborhood, making it difficult to price.
Unique properties have their pros and cons just like other houses, but they don't appeal to mainstream buyers (otherwise there would be many others like them, and they wouldn't be unique anymore). This means you may have a hard time reselling your unique house and you may even fail to recoup your investment.
When a mortgage lender advances you a loan to buy a property, they are investing in your property because you have to pay them back with interest. Investors like to deal with standard properties because these are the ones they understand. They don't have experience with unique homes, and they don't like to lose money, so they may not be ready to approve your mortgage for a unique home.
Just like mortgage companies, home insurance companies also tend to be wary of unknown risks. For example, they may think that your unique home may not withstand weather-related damage as much as standard homes do. This means you may have a hard time getting home insurance for your unique home or the rates may be higher than usual.
Regulatory and Legal Constraints
Lastly, you may not be as free with your unique home as you would have been with a standard home. For example, it may be in the wrong zone for what you want to do with it, or there may be restrictions on renovations or remodeling. Buyers of historic homes, for example, should know that the government will have a say on how they can renovate their houses.
If your heart is set on owning a unique home, involve a real estate agent in the process to help you avoid the potential complications. Hopefully, you will end up with your dream home. For more information on home listings near you, contact your local realtor.