Have you been binging your favorite HGTV shows and are now wondering if buying a fixer-upper home might be worth it for you? The short answer – maybe! In truth, there are many factors involved in whether or not a fixer-upper home is right for you. Whether your goal is to fix it up into your dream home or maybe give house flipping a try, there’s a huge difference between watching the pros do it on tv and actually doing it yourself. It’s definitely possible, but you definitely need to think it through carefully first.
Here are some things to consider before buying a fixer-upper home.
One of the most exciting aspects of buying a fixer-upper home is getting more creative control over the finished product. In a house that needs a lot of work, you have free reign over almost every feature to make the house your home.
You can change up an outdated floor plan to an open floor plan, choose the type of flooring you prefer, have all the accents, lighting, and finishes you’ve always wanted, etc. Essentially, you can have the home of your dreams, because it’s all up to you! And you can get your dream home for usually a much lower price than going the custom home route.
As we just discussed you have free reign over the design and outcome of your home. This can be either a pro or a con for homeowners depending on your capabilities for home design. Watching it unfold on HGTV and actually committing to it and doing it yourself are two very different experiences.
The opportunity to have control over design decisions can be extremely exciting and rewarding for those who love DIY projects and enjoy making creative design decisions. However, some people are not quite as design-minded. For these people, having to constantly make countless large and small decisions regarding any number of various aspects of home design can end up feeling more like a burden and a chore rather than an exciting project.
Be realistic with yourself about your capabilities and desire to commit to designing your home before buying a fixer-upper home. Remember, any design choice will affect other parts of the home.
Before buying a fixer-upper home, ou need to be aware of what types of renovations may or may not be allowed. Zoning laws dictate this.
For example, if your house is in a historic district, you might not be allowed to make certain alterations to the property altogether. It’s better to know this ahead of time so you don’t buy a home expecting to make renovations and not be able to due to zoning laws.
You also need to check zoning laws before buying a fixer-upper home because you’ll likely need building permits to make any structural changes, which are usually over a thousand dollars.
As we’ll discuss a little later in this article, you can get a great deal when buying a fixer-upper home. However, you still must consider the costs of renovations.
Some renovations are more costly and expensive than others. Roof repair, flooring, new cabinets – it all adds up. Also, there is always risk involved in buying a fixer-upper home. For example, you might begin your renovations only to discover mold behind the walls, and that can sometimes cost several thousands of dollars to remove depending on the extent and damage. For this reason, fixer-upper homes can be difficult to budget for. It’s difficult to get an overall idea of everything that needs to be done and accounted for in a budget until you actually start. Oftentimes things come up that you didn’t expect.
Many people buying a fixer-upper home enjoy projects and are planning on doing much of the renovating themselves. Even then, this usually takes a significant time commitment and a certain level of skill. If you just can’t cut it doing the renovation work yourself you might need to hire people for some tasks. The more work you have to outsource means more money spent, sometimes adding up to more than you intended and set aside. Don’t buy a fixer-upper home if it will just end up being a money pit for you.
If you’re buying a fixer-upper home, it’s likely not move-in ready and it might take many months until it becomes so. If you are needing to move into your home ASAP, a fixer-upper home might not be for you right now and you should go with a move-in ready home instead. However, if you have a flexible schedule and the time, a fixer-upper home might be an exciting option!
As mentioned above, you can get a great deal when buying a fixer-upper home. On average, a fixer-upper home costs about 8% less than market value. If you’re able to do most of the renovations yourself, many people still end up with a lower-cost home overall.
Also, one of the sneaky perks of buying a fixer-upper home is that you pay property taxes based on the sale price of your home. So if you bought your home cheap because it needed a little work, you’ll be saving even more money on property taxes every year than if you bought an expensive finished home.
Lastly, another perk of buying a fixer-upper home is that you might be able to flip it for a profit. While some people buy a home that needs a little work so they can create their dream home, others are buying a fixer-upper home so they can flip it and make some extra money. Indeed, if you are skilled enough, have an eye for good home design, and make wise renovation choices, you can often raise the value of your home well above what you originally paid for it, along with the renovations. This can be an incredibly rewarding experience!
Are you considering moving into a new home? Maybe even a fixer-upper? Give Ruth Stultz a call to see how she can help! Ruth Stultz is a highly experienced realtor who understands Lake Conroe and Montgomery County better than anyone. When it comes to the sale of your current home or finding the perfect property with everything you want, Ruth knows exactly where to look. You can trust Ruth Stultz with buying and selling your home.
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