Want To Buy A Fixer-Upper? 3 Things To Consider
Buying a home is a major financial decision for many people. Whether it's a starter home or a home that you plan on staying in forever, you want to make sure that you find a property that works for your needs and that also suits your budget. When looking at homes for sale in many parts of the country, finding one that works with your budget may be a tall order. In recent years, real estate prices have surged in many locations. For those looking to save, fixer-uppers are often tempting. However, there are a few things that you should consider when buying a home that needs some work.
Consider The Total Cost
When looking at fixer-uppers, many home buyers make the mistake of focusing solely on the asking price. While lower asking prices are often the main draw of purchasing a home that needs some work, you may end up not getting as good of a deal as you expect. When shopping for a fixer-upper, it's important to factor in the cost of improvements. A home that needs a lot of work can quickly blow your budget even if the asking price is low. Before buying, have a solid estimate of how much renovations will cost, and then tack on an additional 10 to 20 percent for unexpected issues.
Renovations Take Time
Another thing to consider when looking at potential fixer-uppers is how long renovations will take. This can vary depending on your budget and the home itself. Some home buyers prefer to do the work as soon as possible while others plan to fix the home up gradually. The average home renovation takes between 4 and 8 months. Some changes, such as painting and replacing many types of flooring, can be done fairly quickly. Other renovations, such as foundation repair and full bathroom and kitchen remodels may take more time.
Inspections Are Important
The overall condition of a fixer-upper is also very important and should be considered carefully when you are looking to buy. A home inspection will ensure that you know exactly what you are getting into when you buy a new home. The cost of a home inspection ranges on average between $278 and $388. Getting a home inspection will help you determine whether or not there are any major problems with the home that could be expensive to fix.
When looking at homes for sale, fixer-uppers may be an attractive option. However, there are a few things to keep in mind before buying. Make sure that you consider the total cost of the home including the renovations when making your decision. Renovating a fixer-upper can also take time. It may take months or even years for you to get your home in the condition you desire. Home inspections are also a must before buying a fixer-upper.