Things To Consider Before Buying a Fixer-Upper
DIY and home renovation shows have increased the amount of buyers that now want to purchase fixer-uppers. But before you decide to buy a fixer-upper—and invest money, time, and your resources in fixing it up — you should know a few things first.
According to a recent article from Houselogic, there are a few key pointers all buyers really need to consider before purchasing a fixer-upper.
- Price – The whole point of a fixer upper is to purchase it, then invest money in fixing it up, and finally transform it into your dream home (or flip it and sell it for a possible profit). But for that to happen, you need to be able to purchase the home at a lower price — and have enough of money left for renovations needed. If the price is too high, you are going to get into a situation where the house needs a lot of work — but because the price was too high you no longer have the means to pay for that work.
- Improvements needed – Not all fixer-uppers are the same. Some will need a few minor cosmetic changes, some will need a few major projects, and then others will need a complete gut job. Before you purchase a fixer-upper, it is very important to get a thorough home inspection to uncover as many possible issues as you can. But, also know that there is a good possibility some things will not be able to be found until you are in the middle of a renovation. So, always expect the unexpected, even if you do a thorough job taking into consideration all the improvements that you feel will be needed before starting.
- The “fixing up” process may take some time – Renovating a fixer-upper does not happen overnight. Depending on the amount of work needed, your budget, and the contractor’s availability, the construction process could take many, many months. If you are going to be living in the property, this can be extremely disruptive to your normal day to day routine — so before you decide to purchase a fixer-upper, make sure you know how much you are willing to deal with the actual “fixing up” process.
Purchasing and completing a fixer-upper can be extremely rewarding though. It can be a great investment that you can turn into a profit, or it can help you build equity in a home you live in. But, make sure you go into it this with your eyes wide open, and do your research and planning, before purchasing that “fixer-upper”. Don’t forget to talk to your real estate agent for advice! Make sure to give us a call for a no-obligation consultation! 712-224-NEXT