5 Things to Consider Before Buying
Buying a home can be incredibly expensive, especially for first-time homebuyers without a lot of money for a down payment. This is why many young buyers look for cheaper homes that need a little work. While buying a fixer-upper can be a great way to get a home at a price you can afford, it’s not always easy. If you’re not careful, your fixer-upper can quickly turn into a money pit! To ensure a fixer-upper is the right move for you, consider the helpful advice presented below, courtesy of Dedicated Moving.
Should You Buy a Fixer-Upper?
Before you commit to a fixer-upper, make sure you know what you’re getting into, especially if you’re looking at homes listed “as-is”. Buying an “as-is” home can be risky. When properties are listed “as-is”, sellers will not make repairs or offer credits for any defects, no matter how major. Make sure you get the home properly inspected! Be sure to conduct your due diligence by consulting a lawyer, performing a title search, and having the land records examined.
How to Spot a Good Purchase
The perfect fixer-upper is one with good bones and minor imperfections that turn off buyers looking for a home that’s move-in ready. Cosmetic issues like peeling paint, dated fixtures, and old carpets are easy to fix on your own. On the other hand, structural problems, water damage, and outdated home systems can cost an arm and a leg to correct, so try to avoid homes with these red flags. Remember to also consider location and layout, especially if you’ll be selling in the future or renting the place out to tenants.
Planning Your Repairs
Ready to start knocking down walls? Don’t go overboard! MYMOVE suggests a few simple cosmetic upgrades that might be enough to achieve your aesthetic goals. Start by fixing holes in the walls and giving the interior a fresh coat of paint. This will make a big difference in the appearance of the home! Instead of ripping out the kitchen and bathroom, give the cabinets a fresh coat of paint, replace the hardware, and re-grout the tiles. Focus on giving the home a facelift instead of gutting and rebuilding it.
Home Warranty of No Home Warranty?
Fixing up an as-is home requires hard work, dedication, and of course, money. When you’ve finished getting the plumbing and electrical issues repaired, you want to ensure that everything continues to run smoothly. That’s where a home warranty comes into play. A home warranty can help protect your household budget from unexpected breakdowns and problems. Instead of trying to find money to fix the issue, a home warranty will swoop in and cover the cost.
When to Call the Pros
Many people who purchase fixer-uppers are intent on completing renovations on their own. While this will save you some money, it’s not always the best option. It can actually be cheaper, in the long run, to hire a professional for more technical projects like plumbing and electrical work. Besides these, you should always hire an expert when you’re dealing with repairs to your roof. If you’ve noticed that your roof looks a little worse for wear, get in touch with a local pro who can assess the situation and get it back in great shape. When you’re looking for the right one, home warranty reviews is a good place to start, so spend some time researching your options.
To Stay or Sell
When all is said and done, it’s time to make the ultimate decision—to stay or sell. To make your decision easier, consider a few important questions. Does the location of the home align with your lifestyle and tastes? Is this a good time to sell in your local market? Is your family outgrowing the bounds of your home? Do you have enough equity to pay off your mortgage and put a down payment on a new home?
Would renting out your home be a better financial move? If you plan to turn the property into tenant housing or a vacation home, be sure that you have set up a business to operate under. There’s a lot to think about. Consider your options carefully!
If you’re trying to buy a home on a budget, a fixer-upper can seem like an attractive option. While purchasing a home that needs some work isn’t for everyone, it’s a great way to become a homeowner when you’re short on funds. Look for ideal fixer-uppers, invest in a home inspection, and hire professionals when your improvement projects fall outside of your skillset.
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