A fixer upper can be very tempting when you are looking to buy a home. Snag a home in a great neighborhood and renovate it until your heart’s content. Whether you are a first time home buyer or real estate veteran, there are pros and cons you need to consider before purchasing a property that needs major renovations.
A less-than-perfect house often allows buyers to purchase in a neighborhood they otherwise couldn’t afford. This means an awesome school district and a safer area for your family. (For instance, you’ll be able to buy a fixer-upper in North Colonie school district cheaper than you’d find a home ready for move in.) A fixer-upper located in a desirable neighborhood usually sells for less than the surrounding homes.
When redoing a home there is the opportunity to create a space all your own and make it exactly how you would like. Were you hoping for an opened floor plan? Bigger living room windows? Now is the chance to customize it to fit all your needs.
There are a lot of variables specific to each property. However, typically in a situation like this, buying a fixer-upper and eventually selling will make you a profit.
You may be overwhelmed with the amount of work, time and money it takes to renovate. Unforeseen discoveries can lead to a major dent in your bank account. Always have a back up plan to access funds or credit in case of hurdles. Of course, you can avoid this by hiring one of our preferred vendors to walk through the property with you before purchase.
There is always a possibility that you could lose money on your investment. It is common to go over budget on repairs and renovations. The housing market is another variable that can be unpredictable (although, this is true for any property).
Whether you’re hiring a contractor or doing the work yourself, the renovation process is often stressful. Be aware of the commitment you are signing up for. Are you planning on living at the property while doing renovations? Will your entire family be ok with that? If not, can you afford to carry two homes at the same time?
If you’re torn on what to do, you should really sit down with an expert. We’re happy to consult with you on any of your real estate needs.