Fixer-uppers are appealing for some people because houses that need renovation can be bought for much less than market price. And if the price is good enough, padding renovation costs on top of that still won’t exceed the market price.
However, there are times when a house is in such a poor shape that renovating will cost you a fortune. Hence, buying fixer uppers will always have risks.
The first thing to consider in buying a fixer upper is cost of renovation; both structural and cosmetic. If a home is going to require mainly cosmetic improvement like painting, floor refinishing, changing kitchen and bathroom facilities, it’s likely going to be worth it. But if, on the other hand, you would need major structural adjustments then you should think again. This is not to say that the fixer upper cannot be transformed into your dream home.
A thorough evaluation of all that needs to be done in the building should be carried out. It is advisable to involve experts in the valuation. When this has been done, a good estimate of the cost should be made; and this should be subtracted from the value of the property based on prices of similar property in the area. In addition an extra 10 to 15% should be subtracted from that value to make up for unforeseen expenses. Whatever is left should be the fair price for the building
One other thing is to be patient. Many are really in such a hurry when it comes to moving into their new homes, especially if it`s their first; but this can only help to compound problems in the long run. To get the most out of the fixer upper, you will need to be patient with the contractors; work along with them, to make sure that your home turns out to be just as splendid as you expected.
So what could go wrong in a fixer upper? Well, not all major issues are obvious. I know someone who bought property where the building had a crumbling concrete foundation. To make matters worse, his insurance company had denied him claims for coverage. But all this could have been avoided if he had used experts to thoroughly inspect the building.
In conclusion, it must be said that while many people prefer to buy new homes, others still feel that they could make considerable savings by buying an upper fixer—and this is sometimes the case.Tags: home renovation, is a fixer upper worth it, should you buy a fixer upper, why buy a fixer upper