With rising real estate prices, buying a home can be a tough decision. For some, the only way to do so is to purchase a fixer-upper. If you’re considering a property that needs some TLC, there is a lot to consider.
how bad is it really?
There is a good chance that a place has been priced to sell because of its condition. The idea is that a lower price will make the property more attractive to buyers. This is why most fixer-uppers are priced so low.
However, you will still want to know what the property needs. Be sure to get a home inspection no matter what. Even if you have the budget you want to be sure the investment will be worth it.
are there any hidden issues?
If there is one thing that can be clear from the outset, it is if there have been any pests. You can easily spot them by their droppings. But, if things have been really bad, there will be a smell. This could be rats and mice pee. If it looks like there has been something else living in the house, you need effective pest control services to give the place the once over.
is the location ideal?
A good deal isn’t such a good deal if it’s in a bad area. You will want to do your due diligence even if the price is attractive. Go by at night and on the weekend to be sure the location works for you. You should feel safe and comfortable in the neighborhood. If possible, check out the crime statistics for an area. You might be surprised by the results. It might be a good idea to pick the area that you would like first and then search for properties within your area of choice.
are the repairs reasonable?
This might seem like an obvious one but can you afford to make the repairs if you buy a house? Even when you buy a new property that has just been renovated, the mortgage company will ask questions about your affordability. If you can just about make the mortgage repayments, you might need to consider the property. As the homeowner, you will be responsible for any repairs. And, if you have a fixer upper that needs a lot of work, you might struggle to make the repairs that it desperately needs. You might need to take the cost of buying the property and add the cost of the repairs together to work out if it is going to be worth your while.
what’s the history of the building?
As businesses shut down and downsize, there are a lot of old buildings coming on the market. Many of these buildings are old bank buildings, old jailhouses, and even old churches. If you spot one of these buildings on the market and come up with a plan to change it, ask yourself if it is an important building first. If it is a building of historical importance in your town, there might be restrictions to what you can do to it. It is important to check and see first. The last thing you need is to make all of these grand plans and have them shut down by the town historical society who want to preserve the building.
As you can see, there are many things that you need to consider before you commit to buying a fixer upper. If you feel that you are up to the task, we wish you the best of luck with your challenge. If not, we hope you find the property of your dreams in slightly better condition than some of the other properties that you have been looking at.