{"id":49046,"date":"2021-02-25T20:24:42","date_gmt":"2021-02-26T04:24:42","guid":{"rendered":"https:\/\/www.movoto.com\/blog\/?p=49046"},"modified":"2021-02-25T20:24:42","modified_gmt":"2021-02-26T04:24:42","slug":"is-buying-a-fixer-upper-home-the-best-option-for-you","status":"publish","type":"post","link":"https:\/\/www.movoto.com\/blog\/is-buying-a-fixer-upper-home-the-best-option-for-you\/","title":{"rendered":"Is buying a fixer-upper home for you?"},"content":{"rendered":"

While it might seem odd to purchase a home that needs extensive repairs, people end up making tons of money by doing this all the time. Fixer-upper homes can be a great investment, but they can also be a huge financial risk.
\nIf you\u2019re considering buying a fixer-upper, there are certain things you need to watch out for. It\u2019s all about finding a house with a low price tag that you can realistically repair for cheaper than how much you can raise the home\u2019s value. Purchasing and fixing a house in poor condition can get you a nice profit, but it\u2019s important to remember that it isn\u2019t for everyone.<\/p>\n

1. Do Your Research!<\/h2>\n

With so much money on the line, it\u2019s important to know everything you can about a fixer-upper home prior to making your decision to purchase it or not. Look ahead into how the local real estate market is doing, as well as what permits you\u2019ll need to make the repairs. The last thing you want is to buy a broken house in a failing town, only to realize you\u2019ve got to jump through tons of red tape to get any of the construction done.
\nNot only does doing your research help you know what to ask when you\u2019re talking with the realtor in charge of the sale, but it also helps you uncover certain things that a realtor might not be telling you.<\/p>\n

2. What Needs Fixing?<\/h2>\n

\"Is
\nJust because a house has a low price and a good location doesn\u2019t mean that it\u2019s a good deal. It\u2019s important to consider how extensive damages are to a home when you\u2019re looking at a fixer-upper.
\nAre the damages minor problems like paint chipping? Or are they major, like any problem with the structure or the foundation of the home? In most cases, it\u2019s advised to avoid purchasing homes with major problems, as these often turn out to be more trouble than they\u2019re worth. It might cost you a little extra money upfront, but hiring your own home inspector<\/a> to check out the property is the best way to get a full picture of what you\u2019re getting into.<\/p>\n

3. Have A Plan For Renovations<\/a><\/h2>\n

In order to gauge the feasibility of repairs, determine which ones you will be able to do yourself and which ones you\u2019ll have to hire a professional for. Consider all of the repair costs, including things like supplies and labor.
\nYou don\u2019t have to have the final number accurate down to the penny, but you should at least have a good idea of what ballpark it\u2019s in. Whatever you do, try not to get distracted and pulled in by the low price tag, make sure your final goals are realistic first.<\/p>\n

4. Can You Afford a Fixer-Upper?<\/h2>\n

Know how much money you\u2019ve got available to put into the home and consider whether or not the purchase, plus all of the repairs, is actually doable. Nothing is worse than having to put repairs on pause for financial reasons, only to have more problems arise while you\u2019re saving up more cash to throw right back at the house.
\nIt\u2019s also important to be aware of things like property taxes<\/a> (they\u2019ll go up as your home\u2019s value rises) and realtor fees, as both of these things can end up affecting what you actually end up paying for the home.<\/p>\n

5. Make Your Fixer-Upper A Long-Term Investment<\/h2>\n

It might be obvious, but when you\u2019re considering the purchase of a fixer-upper you should look at it as a long-term financial investment<\/a>. This means you need to pay special attention to problems that may arise several years down the road, whether it\u2019s a new repair you\u2019ll have to make or the side effects of living in a neighborhood that\u2019s falling apart.
\nYou don\u2019t want to spend your time and money on something that\u2019s destined to fail. If the home inspector you hired seems a little iffy about something that could turn out to be another major problem, trust them. If a street is full of graffiti and all the windows are broken, find another area of town. Problems like these can make it very difficult to improve the market value of a home, regardless of how much money you\u2019re sinking into it. Make sure your new potential home and the area it\u2019s located in both have bright futures ahead prior to signing any papers.<\/p>\n

6. Protect Yourself from Fixer-Upper Risks<\/h2>\n

\"Is
\nBuying a fixer-upper can be risky, but there are some precautionary steps that you can take to minimize the risk involved. One of the most common personal safety measures involves working contingencies into the deal in the event that previously unknown problems arise.
\nThings like mold, pests, and septic issues might be missed in initial walk-throughs, only to be noticed when you start to roll up your sleeves and work. If there\u2019s something you\u2019re worried about, find a way to include a little bit of insurance somewhere in the final deal you sign.<\/p>\n

Quick Tips At The Open House<\/h2>\n
    \n
  • Check for structural damage.<\/b>Structural damage is generally considered both a major problem and a reason to avoid a certain home. Look for things like warped wood and termite damage every chance you get.<\/li>\n
  • Check the foundation.<\/b>This one can be a little tricky to do without the proper tools, but some quick observations can help you determine if there\u2019s a further need to investigate. For example, a wet basement can be a great indicator that there\u2019s an issue there.<\/li>\n
  • Know how old the wiring is. <\/b>Wiring is something that tends to wear out over time, often becoming a fire risk that requires replacement. Try to determine if the wiring is another thing you\u2019ll need to replace.<\/li>\n
  • How\u2019s the roof? <\/b>Roof repairs can get expensive, so it\u2019s important to know if that\u2019s something you should be expecting or not prior to purchasing any home. Look for visible damage on the outside, as well as water spots on the ceiling inside as indicators for what condition it\u2019s in.<\/li>\n
  • Does the plumbing work? <\/b>Look for things like rust, leaks, and low pressure. All of these things can be an indicator that there\u2019s a bigger problem. If you\u2019re at an open house, don\u2019t be shy. Try to test out the faucets, showers, and toilets for yourself.<\/li>\n
  • How are the windows? <\/b>Not only can windows get expensive to replace, having ones that don\u2019t seal properly will lead to much higher energy bills thanks to poor insulation. Be on the lookout for cracks, frailty, and possible rotting.<\/li>\n<\/ul>\n

    The Bottom Line<\/h2>\n

    There\u2019s a lot that goes into fixing a fixer-upper. If you think you can take on the challenge, be prepared to spend a lot of time, effort, and money making the repairs. Fixer-uppers aren\u2019t for everyone and purchasing one before you\u2019re ready can spell disaster.
    \nKnow exactly what you\u2019re getting into and have a plan you can follow to turn a profit prior to buying anything. The more time and effort you put into determining whether or not you want to fix a home and then which home you should fix will probably correlate with how happy you\u2019ll be throughout the entire process.
    \nTry not to make a speedy decision unless you have to, otherwise, you\u2019ll run the risk of waking up several months later and realizing that you bit off much more than you could chew. Fixer-uppers can definitely be a great investment, just make sure you put in the research first.<\/p>\n","protected":false},"excerpt":{"rendered":"

    While it might seem odd to purchase a home that needs extensive repairs, people end up making tons of money by doing this all the time. Fixer-upper homes can be a great investment, but they can also be a huge financial risk. If you\u2019re considering buying a fixer-upper, there are certain things you need to watch out for. It\u2019s all about finding a house with a low price tag that you can realistically repair for cheaper than how much you can raise the home\u2019s value. Purchasing and fixing a house in poor condition can get you a nice profit, but […]<\/p>\n","protected":false},"author":2,"featured_media":49049,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42],"tags":[200,153,100],"class_list":["post-49046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-tips","tag-fixer-upper","tag-home-inspection","tag-renovations","post--single"],"yoast_head":"\nIs buying a fixer-upper home for you?<\/title>\n<meta name=\"description\" content=\"Before you go out and buy a fixer upper home, there are important things you need to know to make sure you don't break the bank.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.movoto.com\/blog\/is-buying-a-fixer-upper-home-the-best-option-for-you\/\" \/>\n<meta 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