Have you thought about buying a fixer upper? Have you thought about all the pros and cons? Let’s look a little deeper at buying a fixer upper
Are the TV shows dedicated to the idea of rehabbing a home what causes so many people to consider buying a fixer upper?
The thought of getting a great deal is nothing to scoff at. Maybe it seems like a great idea to buy a house needing a little TLC so you can turn it into the home of your dreams.
Let’s look at the pros and cons:
To Renovate Or Not To Renovate
Sometimes people will ask me what a home needs. Since I am a REALTOR and NOT an engineer or contractor, I can only tell you what I have seen. Often my answer is the only thing a home needs is 5 gallons of gas and a match….
You might think that rehabbing a home is easier, faster and cheaper than it really is. Sometimes it will take several months and thousands of dollars to make a home livable. The reality is that a fixer upper can be a lot of work and money.
Is a Fixer Upper the Right Choice for You?
There is no doubt that if a home needs work it is going to sell for a lower price. And that is the the main advantage of buying a fixer upper. But is it worth it for the amount of time and money you will need to spend?
Questions to Ask BEFORE Buying a Fixer Upper:
Do You Have the Skills?
Do you (or your friends and family members) have the skills to be able to do the rehab? If you do the work yourself, you will be able to save thousands of dollars. If you do not have the skills, it will cost you thousands of dollars.
Do You Like the Smell of Sawdust?
The ideal situation is not having to live in the home while you renovate or rehab it. Remember that you might have to go without a kitchen or a shower for a while.
Can you live in a construction zone for several months?
Can it Be Saved?
A thorough inspection is a must so you know exactly what you are dealing with. If the inspection reveals any structural issues or water damage/mold, run away!
You MUST start with a house that has “good bones”.
Do the Math!
If the cost of the home PLUS the rehab means you are not getting a better deal, then run away! It is better to NOT buy than it is to pay too much!
How Are You Going to Pay for the Home and the Repairs?
What is your strategy for financing the purchase and renovations?
Many lenders shy away from lending on fixer uppers. There are some options for buying a house that needs a rehab. But they cost more and are may be only available for people with great credit. If you are planning on paying for the supplies with a credit card, you might want to reconsider because of the high interest rate.
The Take Away
I understand that you may think that buying a fixer upper means transforming a run-down old house into the home of your dreams. However, the reality is that rehabbing is not for everyone!
You need to think long and hard before making your decision. You really need someone with the right experience helping you!