You’ll often see the phrase “needs TLC” in real estate listings, but it doesn’t mean the ’90s rap group or the TV channel. The slang definition of TLC, or “tender, loving care,” can be interpreted as “this home needs work”—and odds are high it needs a lot of work before you, or anyone, will love living there. And that, of course, could jack up your spending on what might initially appear to be a bargain home.
The meaning of TLC
“‘TLC’ is when a home needs an extensive amount of remodeling,” says Lloyd Nichols, a Realtor® in Fort Myers, FL. And we’re not talking about slapping down a fresh coat of paint, but major work that will take time and a chunk of money.
A new roof will cost an average of $8,949, according to HomeAdvisor.com, whereas an AC system will cost about $5,845. More than likely, your TLC fixer-upper will need more than one repair done.
Nichols estimates that buyers could spend an extra “$20,000 and up” on repairs. A larger house, or one that shows signs of serious wear, may need even more expensive TLC.
“Hot buttons for most buyers will be the foundation, roof, [HVAC] system, and plumbing,” says Nick Moomaw, owner of TLC Home Inspections, in Marble Falls, TX. “They’re the ones that are potentially the most expensive to repair.”
Should you avoid TLC real estate?
Buying a home advertised as needing a little TLC shouldn’t be taken lightly. Although TLC is more of a slang word than a legal description, real estate brokers typically don’t add the definition to houses that need only a bit of freshening up. They know that buyers search for “TLC” when they are looking for great real estate deals, so they save that definition for properties that require a bit more courage—and cash—to buy and fix up.
Not everyone should buy a TLC, or fixer, home. If you’re not handy, you may not think of your TLC house with either tender or loving care when it comes time to replace the toilet, or maybe the entire bathroom floor, after discovering exactly the poor condition it is really in. “Loving” is generally not what you’ll feel when you’re on a ladder looking at leaky skylights, either. No matter how carefully you inspect a home and have it professionally inspected, all of its defects will not be revealed at first. If you are seeing neglect in certain areas, the maintenance is probably behind in other areas, too.
You should definitely avoid buying TLC homes if you don’t have the time or money to make all of the repairs. All of the repairs on TLC homes typically take at least twice as long and cost twice as much as a buyer thinks. If you can barely afford to buy the home, let alone have the talent to apply the necessary tender, loving care, consider passing on a TLC sale.
Be aware that some TLC houses may be difficult to finance, especially if “needs TLC” is a charitable definition of a home’s condition. Some houses need more tough love than tender, loving care. Banks are reluctant to approve mortgages on “TLC” homes that are not livable or have serious problems.
Is a TLC home sold as is?
The meaning of the term “as is” in real estate can be misunderstood. Simply saying a house needs TLC in the listing is not the same as being sold as is. An “as is” house means the seller isn’t willing or able to pretty it up—often because the owner has died and the home is in estate condition. But neither term changes the legal rights of the buyer to negotiate. The listing agent and seller must still disclose known issues, and the buyer can still use that information to negotiate the offer with the final sale, contingent upon a real estate inspection.
Ask your real estate broker or a lawyer if you’re not sure how a house is being sold and what your rights are in your state.
Why TLC real estate is worth it—sometimes
Why would anyone want a TLC house if it comes with all this hassle? Because with tender, loving care, an ugly duckling home can turn out to be a bargain. Even if you factor in the extra money you’ll have to pour into renovations, you may ultimately be getting a deal on a TLC home—particularly if you’re handy around the house and can take care of some of the renovations yourself (which explains another euphemism you may see in such listings, “contractor’s delight”). Experts say that as long as the home’s foundation, roof, and structure are sound, a TLC property can be a solid investment.
“You can do extremely well,” says Nichols. “You can even flip it.”
Nonetheless, if you were hoping for a home that’s “move-in ready” (translation: no renovations required), you will want to steer clear of TLC listings—or, at the very least, make your TLC offer contingent on a thorough home inspection. That way, you can assess the damage and know what you are getting into before you commit to buying a TLC house that you may or may not learn to love.
