Fixer-uppers typically sell for around eight percent under market rate, making them extremely appealing when looking at houses for sale. However, they aren’t for everyone, and, as described below, there are a few things to consider when thinking about buying a fixer-upper.
Decide on Your Budget
If you’re buying a fixer-upper, working out your budget will be a little more challenging. First, you should look at the price of the house you’re considering, and then get a few quotes for the renovation work you want, as well as getting a professional inspection of the property to find any hidden issues. Once you calculate the final price of the house and renovations, add an additional five percent to your budget to cover problems and delays.
Buying a fixer-upper can be a great opportunity for someone with a bit of extra wiggle room in their budget or someone looking to make money on the house. However, if your budget is fixed or you’d only consider a traditional mortgage rather than a renovation loan, it might not be right for you.
Consider Your Skills and Interests
Your skills and interests are also important to consider when thinking about a fixer-upper. If you have good DIY skills, an eye for design, and an interest in creating a home that’s perfectly tailored to your family, it might be the ideal choice for you.
The eye for design is particularly important — if the idea of choosing wall placements, flooring, colors, and decor appeals to you, a fixer-upper will suit you perfectly. If you’d rather have someone choose for you, there are plenty of homes that are ready to move into.
Think About the Time Commitment
Fixing up a home takes time, and there are likely to be delays and bumps along the road. Think carefully about whether you really have the time to create the design, work with contractors, and do renovation work yourself over a period of months. However, if you want the perfect family home, it’ll be worth putting your time, money, and resources into a fixer-upper.
You should also think about your schedule. Fixing up a property is prone to delay and might not be ideal if you need to be in your new home by a set date.
If you’re willing to budget carefully and spend a lot of time on your new home, a fixer-upper can be a great way to customize a home to your needs while making money. To find out about homes for sale in Bucks County, PA, contact the Joseph Bograd Real Estate Team today.