What to Consider when Buying a Fixer Upper
Feb 17, 2016
Some people can only consider moving into a home that is already the home of their dreams. Others are able to imagine the possibilities of a home that others might pass right by. If you are considering buying a fixer upper, it is important to note that it isn’t an easy task. However, if you have the time, patience, and planning skills- you may be able to create the home of your dreams and dramatically increase the value of a home. Here are some things to consider when buying a fixer- upper:
Your budget is going to be your number one concern when investing in a fixer-upper. You have to consider every single expense that is going to be made on the house to ensure it is a worthy buy. Have the property assessed by a professional. Do not forget to factor in the high costs of labor, time the project will potentially take away from your job, as well as some cushion for unexpected set backs and costs which are bound to occur in any project. Renovating a fixer-upper is not cheap, but if you do it right it will be a worthy investment.
Location, location, location! This is so important to consider when buying a fixer-upper. Do your research on school quality, resale value and how it will fit your needs long-term. Spending a ton of money on renovations is not going to pay off if it is simply not worth it for the neighborhood. Consider historical areas, the school district, and up and coming neighborhoods when determining if this fixer-upper home is going to be a worthy investment- and worth the risk.
What Kind of Renovations?
Each fixer-upper is going to have different degrees of renovations necessary. Cosmetic renovations are going to be the easiest to fix up, and generally the least expensive. Structural repairs however are going to cost you. Before investing in a fixer-upper, have the structure professionally examined. Is the foundation healthy and steady? Are there problems with the roof? How is the electrical function and plumbing? There are tons of considerations that need to be made regarding the degree of renovations you will be working on.
If you haven’t been deterred yet, then you may be the perfect candidate for taking on a fixer-upper project! The first step to creating the home of your dreams is figuring out how to finance it. Home Point Financial Corporation is here to help you figure it out, so contact us today to start a conversation.