Fixer-uppers offer a chance to save some cash on the purchase of the home and to make the home exactly what you want it to be. But going with a fixer-upper isn’t the right choice for everyone. If you’re thinking about taking on the challenge of a fixer-upper, here are a few things to keep in mind while you make your decision.
1. Make sure you’ll get a good return on investment. While fixer-uppers can be bought for rock-bottom prices, they can take a lot of work and money to be remodeled into a liveable condition. You’ll want to price out the work to be done on the property to make sure you’ll recoup the money and time spent on renovations when you sell the home down the line.
You can estimate how much it will cost to renovate a specific property by getting a quote from a contractor, getting a list of comparable properties in the area from your real estate agent to see what they’re selling for, and getting a thorough inspection for any hidden issues before you buy.
2. Be realistic about your skill level. Depending on the property, your fixer-upper might need more than just cosmetic work. How much work can you do yourself, and how much do you need to contract out? You might be really good at doing tiles and painting, but can you lay drywall or run electrical? Contracting can add up quickly so be realistic about how much work you can do yourself.
3. Understand the timeline. It will take time to get the property renovated, and remodels tend to take more time than expected. If you’re wanting a move-in ready home as soon as the closing papers are signed, a fixer-upper likely isn’t for you. While the renovation is happening, you’ll either have to live in the property at the same time or live somewhere else, which can be an added cost.
While you’re considering a fixer-upper, a good rule of thumb to keep in mind is to plan for more work, time, and money than you initially think it will take.
If you’re up for the challenge and want to make a house into your dream home, let’s chat more about what you’re looking for in a fixer-upper.