While every homebuyer's dream is to move into their dream home as quickly as possible, expectations are quickly tempered when the home they can afford is limited by their budget. One appealing option for many homebuyers struggling to enter the real estate market is to purchase a fixer-upper. While the low price of a fixer may be enticing, the outcome can be disastrous if you buy the wrong kind.
The best home to fix up would only require minor repairs such as replacing antiquated wallpaper or flooring. However since a multitude of homebuyers and real estate investors are scrambling for this type of property, it's almost impossible to come across this opportunity. But there's hope, you can find certain visually unappealing fixer-uppers other buyers will pass up.
The extreme opposite of the simple fixer is the home requiring significant renovation such as foundation work, moving or adding walls, adding more bedrooms and much more. Unless you have a rich uncle or a contractor in the family, you should walk away from these type of properties, especially if there are significant health violations (like mold) or can't be lived in because of extensive damage to the roof or floors. Let's study the 3 main concerns when buying this type of fixer-upper:
1) Bank Approval May Be Difficult - A bank may deny your loan until you complete a minimum number of repairs. If your budget can't afford these repairs, you won't be approved for a loan.
2) Repair Costs Can Exceed What You're Willing To Spend - If the reason you purchased a fixer was due to financial limitations, how will you come up with the money for additional repairs? Don't be fooled into thinking a basic cosmetic fixer won't need some minor reconstruction work. If you still decide to buy a home needing significant remodeling work, be sure you set aside additional funds for future projects.
3) Major Remodeling Can Disrupt Your Life - If this is your first home, you may not want to deal with contractors, take time off work to oversee their activity, and deal with unexpected delays or extra costs. Your family relationships can also suffer from the resulting chaos while living in the house during construction.
Your best option would be so search for a fixer-upper somewhere in between the two extremes: a home needing moderate repairs you can handle on your own or with some professional assistance. Choose a home that only needs new paint, carpeting, or tile work rather than a new roof or major electrical upgrades. If you do find a property that fits your criteria, make sure to:
1) Check with the city building department to see if your plans are feasible. Most cities have minimum code requirements for upgrading wiring and plumbing, height limits, setback rules, and other restrictions.
2) If you plan to add a second story or a room, be sure to consult with an architect, contractor, and engineer about the feasibility of the project and estimated costs.
3) If you plan on purchasing a fixer with a partner, make sure to sit down and discuss how all parties will deal with the inconveniences and headaches associated with remodeling such as time off work and supervising contractors. - 31862
The best home to fix up would only require minor repairs such as replacing antiquated wallpaper or flooring. However since a multitude of homebuyers and real estate investors are scrambling for this type of property, it's almost impossible to come across this opportunity. But there's hope, you can find certain visually unappealing fixer-uppers other buyers will pass up.
The extreme opposite of the simple fixer is the home requiring significant renovation such as foundation work, moving or adding walls, adding more bedrooms and much more. Unless you have a rich uncle or a contractor in the family, you should walk away from these type of properties, especially if there are significant health violations (like mold) or can't be lived in because of extensive damage to the roof or floors. Let's study the 3 main concerns when buying this type of fixer-upper:
1) Bank Approval May Be Difficult - A bank may deny your loan until you complete a minimum number of repairs. If your budget can't afford these repairs, you won't be approved for a loan.
2) Repair Costs Can Exceed What You're Willing To Spend - If the reason you purchased a fixer was due to financial limitations, how will you come up with the money for additional repairs? Don't be fooled into thinking a basic cosmetic fixer won't need some minor reconstruction work. If you still decide to buy a home needing significant remodeling work, be sure you set aside additional funds for future projects.
3) Major Remodeling Can Disrupt Your Life - If this is your first home, you may not want to deal with contractors, take time off work to oversee their activity, and deal with unexpected delays or extra costs. Your family relationships can also suffer from the resulting chaos while living in the house during construction.
Your best option would be so search for a fixer-upper somewhere in between the two extremes: a home needing moderate repairs you can handle on your own or with some professional assistance. Choose a home that only needs new paint, carpeting, or tile work rather than a new roof or major electrical upgrades. If you do find a property that fits your criteria, make sure to:
1) Check with the city building department to see if your plans are feasible. Most cities have minimum code requirements for upgrading wiring and plumbing, height limits, setback rules, and other restrictions.
2) If you plan to add a second story or a room, be sure to consult with an architect, contractor, and engineer about the feasibility of the project and estimated costs.
3) If you plan on purchasing a fixer with a partner, make sure to sit down and discuss how all parties will deal with the inconveniences and headaches associated with remodeling such as time off work and supervising contractors. - 31862
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