Buying A Fixer-Upper – Pros and ConsJonathan
The housing market tight in many parts of the country and affordability a big issue for a lot of buyers, so buying a fixer-upper is something you might be considering.
We’ve all seen the home make-over shows with amazing before and afters but is it right for you?
Here are a few things to consider:
1. Know Your Limits
How much of the work can you do. How much time do you have to put into renovations. Are you prepared to live in a work zone for a while
2. Work Out Costs In Advance
Have a contractor walk through the inspection with you and get a written estimate for work he would do. If you are doing the work yourself price the costs of supplies, either way add 15% to the costs because surprises are likely.
3. Check Permitting Costs and Procedures
Check with local officials to see if the work requires a permit and the permit costs.
4. Be Extra Careful with Structural Issues
If the house requires structural repairs then double check the work and pricing. Hire a structural engineer to do an inspection and if structural work needs to be done make sure your bid discounts this work
5. Include Inspection Contingencies
Make sure you hire professional inspectors and check for hidden issues like mold, piping issues, pest damage etc., if things come up ask for discounts. And if too many red flags come up or the seller won’t properly discount the costs for repair then stand firm and walk away and keep looking!