Glossary
In the context of real estate, tender loving care—or TLC—refers to the efforts required to repair a distressed property. If a brokerage mentions that a listed house needs TLC, that means the home is in a reasonable state of disrepair. Think of the term as a euphemism for “this place needs a lot of work.”
While a distressed property or fixer-upper can be a great investment, you have to know what you are getting into. The term TLC in real estate listings tends to be an understatement, a cute or romantic phrase to make conventionally undesirable properties more marketable. If you are not prepared to spend a considerable amount of time and money on renovating a home, limit your search to newly constructed and well-maintained homes.
Home TLC usually involves more than a deep cleaning and some updates to the landscaping. Distressed properties need substantial repairs. The issues often go beyond the aesthetics. There could be major structural concerns that pose safety problems or threaten cascading problems in the future.
Problems that you might encounter with a fixer-upper include:
Of course, this list is not exhaustive, and homes that are listed as needing some TLC often have more than one of the problems above.
These problems, except in the most severe of cases, are not insurmountable, but they almost always require professional help. Unless you are a seasoned contractor, it’s unlikely that you’ll have the skills to take the DIY approach to serious structural problems. And professional help comes with a professional price tag. A distressed home can easily require additional tens or hundreds of thousands of dollars to bring it up to modern safety and cosmetic standards.
In favorable circumstances, the overall expense on TLC for house repairs combined with the property’s final sale price would be less than or equal to the assessed value of a well-maintained home of equivalent size. But even with an inspection, it is hard to judge the final cost of renovations and repairs. You might discover new issues in the process of remodeling and repairing, or certain jobs end up being more labor intensive than expected. Even seasoned pros risk going over budget.
For some home buyers, fixer-uppers are alluring. There’s something romantic about the idea of buying a neglected house and giving it a facelift. You have total design control, and you can breathe new life into a property with a storied history. You can update many of the home systems, fixtures, and appliances and make the prospect of breakdowns or malfunctions less likely. If you budget appropriately, you have the opportunity to save some money, possibly paying less than you might have if the home were in amazing shape at closing.
If you have the gumption to take on a distressed property, there are strategies you can employ to keep your expenses in check and make the project more manageable.
Next, tackle problems that can cause cascading or branching issues. The leaky roof that is causing wood rot and mold growth for example.
You’ll also want to prioritize the most expensive or laborious jobs. Generally, these include foundations, roofs, subterranean pipes and tanks, septic systems, HVAC systems, and water wells.
Remember that you might be able to leverage a home warranty to support a property in need of some TLC. You’ll be unlikely to find coverage for appliances or systems that are beyond repair, but you can save money by salvaging the functional equipment and protecting it with warranty coverage. If a system or appliance that you thought was fine malfunctions, you won’t have to dip into your home repair budget to fix it—your warranty can cover it instead.
To learn more about warranty options that can support your new home, no matter the circumstances, call the Liberty Home Guard team at (833)-543-9700.