Let’s talk about something that might not be as exciting as picking out your dream kitchen finishes, but could save you some serious headaches and expenses down the road when you’re looking for your next home to buy.
After helping more than 1,000 families find their perfect Chicago homes, we’ve learned a few important lessons about which building materials can turn your dream home into a money pit and which ones are a small project away from being fixed.
We’re the Ben Lalez team, and today we’re going to break down everything you need to know about problematic building materials in Chicago homes. More importantly, we’ll help you understand which issues you should think twice about buying and which ones you can tackle with proper planning.
Ready to get started?
The “Walk Away” List
Let’s start with materials and issues that are the big red flags and should make you think carefully about moving forward. These aren’t just expensive items to fix. They can affect your safety and the structural integrity of the home.
Failing Foundations
When we’re showing homes around the city, foundation issues are at the top of our ‘proceed with extreme caution’ list. Chicago’s freeze/thaw cycles can be brutal on foundations. When you see horizontal cracks, bowing walls, or signs of significant settling, you’re looking at repairs that can easily exceed five figures.
What happens if you absolutely fall in love with a home that has foundation issues? You’ll need:
- A structural engineer’s report (not just a general home inspector)
- Multiple contractor quotes for repairs
- An appropriate price reduction on the purchase price to reflect the scope of the repair
Aluminum Wiring
If you’re looking at homes built in the 1960s to the 1970s, there’s a chance they may still have aluminum wiring running through the property.
At the time, copper prices increased and builders moved to using aluminum wiring. And while it’s not illegal, it’s considered a serious fire hazard.
Insurance companies often won’t cover homes with aluminum wiring, and if they do, they’ll charge much higher premiums.
If you have to completely rewire a Chicago two-flat, it could run anywhere from $15,000 to $30,000. Aside from the cost, it’s also disruptive work that often requires opening up walls. If you’re considering a home with aluminum wiring, get a certified electrician’s assessment before making an offer.
There is also the option of pigtailing, which involves connecting copper wire to the home’s aluminum wiring at the outlets. However, most experts recommend replacing all aluminum wiring in older homes for safety.
Asbestos
This one requires someone with experience examining asbestos in older homes. If the asbestos is in good condition and left undisturbed, it might not necessarily be a deal-breaker.
However, if you find crumbling asbestos insulation or deteriorating asbestos tiles, you’ll need to undergo specialized removal. Depending on the extent of the work, this can cost between $20,000 and $40,000. This will also add time and expense if you’re thinking about renovating the property, as asbestos needs to be properly and carefully removed.
The “Proceed With Caution” List
Now let’s look at issues that are serious, but manageable with proper planning and budgeting. These shouldn’t kill the deal, but they need to be factored into your purchase decision.
Galvanized Plumbing
This is super common in Chicago homes built before 1960. And while it’s not an immediate crisis, you’ll need to pay attention to it. Galvanized pipes corrode from the inside out, leading to reduced water pressure and eventual leaks.
The good news is you can often replace plumbing in sections rather than all at once. A typical replacement of an entire plumbing system in Chicago could run anywhere between $8,000 and $15,000, but you can do this in stages over time if the current pipes are still functional.
Outdated Electrical Panels
Certain electrical panels, such as Federal Pacific Electric panels from the 1950s to the 1980s, are known fire hazards. Replacing an electrical panel typically costs $2,000 to $4,000. This isn’t inexpensive, but it shouldn’t be a deal-breaker if everything else about the home works for you. Just make sure to budget for replacement within your first year of ownership.
Masonry Issues
Chicago’s weather can be tough on building exteriors. When we see issues with tuckpointing or spalling brick, we know repairs are needed, but they’re generally manageable. Depending on the extent of the work, tuckpointing on a typical Chicago two-flat might cost $5,000 to $15,000.
The “Easier Fix” List
These are issues with the property that you shouldn’t be losing sleep over. They can usually be addressed over time as part of regular home maintenance.
Windows And Insulation
You’ll find older windows and insufficient insulation in many Chicago vintage homes. While updating them will improve your comfort and energy bills, it’s not an urgent issue. When the time comes for you to upgrade, you’ll be looking at between $15,000 and $30,000, but they can be replaced in phases.
Older Roofing Materials
If the roof looks like it’s nearing the end of its life, but it’s not actively leaking, you have time to plan. A new roof in Chicago typically costs between $8,000 – $15,000 for a standard single-family home. This is something you can plan for over your first few years of owning the home.
Making Smart Decisions When You Find Issues
So what happens when you see a home you love but discover it has some of these issues? Here’s our strategy:
1. Get Multiple Professional Opinions
Don’t count on just one contractor or inspector. If there are major issues with the property, get specialized inspections and multiple quotes for the repair. This gives you negotiating power and a realistic idea of the costs.
2. Use Issues As Negotiating Tools
If you’re working with our team, we’ll help you use these findings as leverage for pricing negotiations. Sometimes sellers will reduce the price or offer repair credits.
3. Explore Financing Options
- FHA 203km loans can add repair costs into your mortgage
- Home improvement loans might offer better terms than credit cards
- Chicago’s home improvement grants might help you with certain repairs
- Some contracts offer financing for major work
4. Create A Long-Term Plan
Not everything needs to be fixed right away. We can help you create realistic timelines for addressing issues over a 3-5 year period for non-critical items.
What’s The Bottom Line
It’s important to remember one important fact:
Every home has its issues (even new construction).
The key is understanding what you’re getting into and having a solid plan to address the issues. If you’re unsure about any material issues you’ve discovered, we’re here to guide you. We’ve helped countless buyers through the buying process, and we can help you understand whether that dream home with the questionable plumbing is worth pursuing or if you should just keep looking.
After all, we’re not just here to help you buy a home – we’re here to help you buy the right home. Want to learn more about specific building materials or issues? Give us a shout, and let’s talk!
