Buying a home that needs work is often known as buying a “fixer-upper.” One of the reasons why many people buy fixer-uppers is because they tend to be cheaper; you will need to spend money on renovations or remodeling. If you know what you’re doing, you could save money. In fact, many people will “flip” fixer-uppers they have purchased for a profit once they’ve completed renovations.
Here are 3 things you should take into consideration if you’re thinking about buying a home that needs work:
1. How Much Work is Needed?
When buying a home that needs work, make sure the home’s structure is in good condition. If the foundation or roof needs to be replaced, then you could end up spending much more money than you realize getting the house into good shape.
If the work that needs to be done is mostly aesthetic, such as replacing the kitchen cabinets or the flooring, the cost of doing so might be offset by the money you save on the home’s price. If too much work is required, the initial price may not be worth it in the long run.
2. How Much Time Do You Have?
Renovating a fixer-upper can take a long time, especially if a lot of work is required. You need to have patience because you may find other things that need to be fixed as you renovate. This can be problematic if you need to move in by a specific date.
3. How Much Work Do You Want to Do?
Besides repair work, there may be additional renovations that you want that aren’t necessary, such as adding rooms or additions to the house. Remember that you may need permits from the city as well as permission from your HOA to do so.
Keep these 3 things in mind when buying a home that needs work. Contact us at Randy Lindsay for more advice about buying a home.