In some areas, purchasing a home that is upgraded and in move-in condition can be quite costly. If the current prices of these homes is out of your reach financially, you may want to consider buying a fixer-upper. In most cases, fixer-uppers can be considerably less expensive than updated homes. If you're interested in buying a fixer-upper, use the following tips:
Consider Location
One of the biggest keys to buying a fixer-upper is buying one in the best location possible. Doing so will help ensure that you gain a lot of equity in your home after you finish updating and renovating it. Take the time to find out what the average home value in an area is before buying a specific fixer-upper.
Avoid Major Problems
A home that hasn't been updated in decades may have an outdated kitchen and old bathrooms and flooring, but it can still have good bones. Fixer-uppers that require primarily cosmetic remodeling are the best ones to buy. On the other hand, homes with roofs that are falling apart, electrical systems that are not up to code, and structural problems, such as a cracked foundation, should be avoided. While the price tag on homes with these problems may be low, they can quickly become a money pit when you add up all of the costs of the repairs that will be needed.
Meet with a Contractor
Before making an offer to buy a fixer-upper, it is a good idea to have a consultation with a licensed contractor. Many people do not know the real costs of renovating and updating a home that is not in great condition. A contractor can examine a fixer-upper and give you a realistic idea of how much it will cost you to make the changes that you desire. If you can't financially do all of the renovations at once, make sure you choose a fixer-upper that you can deal with living in while you update it slowly.
Pay Attention to the Home Inspection Report
When you find a fixer-upper that you're interested in buying, it is essential to carefully read every page of the home inspection report. You need to know exactly what you are buying and what will need to be fixed. If a home inspection report shows that there are more issues than you expected, don't be afraid to walk away from the house. Don't forget that during the inspection period you can cancel your offer without penalty.
For more information, contact a professional in your area like those found at Berkshire Hathaway HomeServices Fox & Roach Realtors.
