Friday, September 6, 2013

The Pros/Cons of Buying a Fixer Upper

A fixer upper can be oh so very tempting when you are looking to buy a home, most likely because it seems like the more affordable option. Whether you are a first-time homebuyer or real estate veteran, here are some pros and cons to consider before purchasing a property that needs major renovating.

1) A less-than-perfect house often allows buyers to own in a neighborhood they otherwise couldn't afford. A fixer upper located in a desirable neighborhood may often sell for less than the surrounding homes.
2) When redoing a home there is the opportunity to create a space all your own and make it exactly how you would like.
3) There are a lot of variables specific to each property, but often, there is a possibility for profit in resale once the property is renovated.

1)You may be overwhelmed with the amount of work, time and money it takes to renovate. Always have a back up plan to access funds or credit if any unforeseen hurdles are discovered during the renovation.
• Tip: It may be wise to bring professionals with you to walk through the property before you buy to avoid underestimating the work and cost.
2) There is always a possibility that you could lose money on your investment. It is common to go over budget on repairs and renovations. The housing market is another variable that can be unpredictable.
3) Whether you're hiring a contractor or doing the work yourself, the renovation process is often stressful. Consider the commitment before you buy, especially if you plan on living on the property while doing the renovation. If you do want to do the work yourself, consider the time you will spend on it and what you will need to sacrifice in the rest of your life to make time for it.

Looking to buy a fixer-upper? Let me guide you through the buying process so that you can be assured that you are making the right decision! We know there will be work to be done once you move in, but it is most important to get sound advice from knowledgeable people BEFORE buying! You need some recommendations of contractors who could accompany you on your walk-through? Give me a call. I will make sure that you know as much as you can about the property and figure out just how you can achieve your goals.