Buying A Fixer-Upper: Are
You Ready For The Work?
Always dreamed of
renovating a home exactly to your specifications, or have you found an older
house that is structurally sound but needs a lot of work inside? Perhaps the price is right and you can't
resist all that house you can get for your money. Whatever the reason, buying a fixer-upper can
be both an exciting and rewarding purchase or a financial and time consuming
disaster, depending on whether you are prepared for what you have gotten
yourself into. So what should you know
before buying a home that requires a little or a lot of tender loving care?
The Benefits
The benefits of purchasing
a fixer-upper are obvious. The price is
usually right, and if the seller wants a quick sale because of decreased
interest in the home, you may be able to negotiate a really great price. Also, if you intend to flip the home after
the renovations, the profit for the money and time you have invested can be
quite considerable. The trick to getting
these benefits, however, is knowing what type of property to look for, as well
as having an accurate idea of the associated costs, and realistic expectations
of the time and labor it will take.
What Makes A Great
Fixer-Upper?
There are several features that may make for a great fixer-upper...
Location-Buying a home in
a desirable neighborhood is always a smart idea, particularly with homes that
require a lot of work. Purchasing a house in a sought after area can mean a
greater profit margin for resale value.
Layout And
Configuration-This is especially important if you plan to sell the home after
the renovations are finished. Selecting
a home that will appeal to the greatest number of buyers will get you the best
price. Also, choosing a home with a
layout that flows may save you a considerable amount on the actual renovation
costs because you are less likely to need custom installations and work.
Condition-Ultimately the
most important consideration is the actual condition of the home. Choosing a
fixer-upper with only cosmetic problems such as damaged flooring or old
fixtures and appliances, and in need of only a new paint job, can often have
the greatest profit margin and require much less money and time.
Overall, when purchasing a
home that needs work, getting a qualified home inspector's advice and getting
estimates of the cost of work to be done before making your offer can make all
the difference.
