Purchasing a fixer-upper property can be an exciting and rewarding
experience. HGTV is filled with programs of amateurs knocking down walls
and tiling bathroom floors. The fact is that this is much harder than it looks
and before diving headfirst into this kind of project, it’s critical to consider
whether you are prepared for the venture.
5 Important Things to Consider Before Buying a Fixer-Upper Home
1. Financial Planning – The first step in buying a fixer-upper home is to
establish a realistic budget. Include the purchase price, repair costs, and
any expected expenses for renovation or restoration. Once you have
created a “known” list, then add extra for unexpected issues that will arise.
2. Time and Effort – Renovating a fixer-upper takes time and effort,
even if you hire a general contractor to oversee the project. Consider the
overall scope of the project and evaluate your skills and level of time
3. Structural Condition – Before making an offer, thoroughly inspect
the property’s structure and foundation. Recognize the impact of any issues
uncovered and make sure to budget for the proper corrections.
4. Real Estate Market and Location – Even a beautiful home in a
terrible area is a bad investment. Consider such factors as property values,
market trends, and the potential for future appreciation. Work with a
financial planner to make sure the investment fits your long-term goals.
5. Legal Considerations – Before writing the offer, familiarize yourself
with local building codes, permit requirements, and zoning regulations.
Ensure the changes you anticipate align with local requirements.
Purchasing a fixer-upper home can be a wonderful investment and
worthwhile project. By evaluating your budget, time commitment, property
condition, and potential appreciation, you can be sure to choose the right
situation for your goals and experience.