If you’ve expressed any interest in buying a home that you can work on, your real estate agent may present you with one or two fixer upper properties for your consideration. Fixer upper homes can offer good value for certain kinds of homebuyers.
But not everyone should buy a fixer upper. Here are some considerations to keep in mind.
There May Be Unforeseen Conditions
Until you actually get in there and start renovating, you cannot know exactly what is behind those walls. Fixer uppers could have unforeseen conditions that could blow away your renovation budget.
If you do decide to forge ahead with an offer, consider hiring a structural engineer, a pest control technician and a mold expert to carefully inspect the property first.
Will You Be Able To Live There During Renovations?
Sometimes a fixer upper requires a complete overhaul. Other times there are a few inhabitable rooms you can stay in while completing the rehab.
Consider whether you and/or your family can be comfortable during the work, or if you will need to rent an apartment or stay with family.
This will heavily impact your fixer upper experience.
How Handy Are You – Honestly?
This is the time to be really honest with yourself. How much of the work can you actually do? Are you a wannabe handyman, or do you truly possess the skills and experience to complete quality work? If everyone you know is astonished that you want to work on a fixer upper house, it is a smart idea to take stock of your abilities.
Can You Afford To Hire Workers?
Just because you buy a fixer upper does not mean you have to do the work yourself, either. Maybe you have the money to hire a contractor or workers to get the job done. If hiring others is part of the plan, make sure you budget accordingly. Do not forget to budget for the unexpected because with a fixer upper, you can expect the unexpected.
Finally, if the only house you can afford is a fixer upper and you really want to buy now, then maybe you should go for it. After all, when you finish the rehab, you could be in a position to take some equity out of the house after a new appraisal.
For the right person in the right circumstances, a fixer upper can be a viable choice.
If you are looking to buy a home one day but don’t think you are ready just yet, you are not alone. One of the most important tasks that you have to complete involves getting your finances in order.
