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If you’re thinking of buying a new property, you might come across an opportunity to purchase a “fixer-upper”. In fact, the home might be priced based on its need for work.
Should you buy that “fixer-upper”? That can be a tough decision. Here are some things you should consider:
- What repairs need to be done?
- Are there any major items that will need to be replaced soon, such as the furnace?
- What renovations are needed?
- How much, realistically, are those going to cost?
- How much are the permits going to cost and how long will they take to get?
- Do you have the finances available to successfully finish the project?
- How much of the work can you do yourself?
- How much does a contractor cost? (If you’re going to do this it is never too early to research companies and get quotes. It might even be sensible to do this before you put in an offer)
- How long will it take for the improvements to get done? (How long will you need to live with drywall dust?)
- Will a delay in completion be a problem?
- Do you and your family have the patience to deal with fixing up a house?
- How does the price of a comparable “move in ready” property compare to this one?
Of course, before considering purchasing any property – especially one that needs work – you might want to consider getting a professional home inspection. It will uncover any issues you can’t catch during a viewing.
Not all fixer-uppers will require the same amount of work. So some may be better or worse suited to your needs. Ultimately, you’ll have to weigh the pros and cons before buying any fixer-upper.