Four Tips For Buying A Fixer-Upper

Posted on: 8 August 2017

When you are looking to buy a home, you may be willing to invest in a fixer-upper you can put some work into. If you love DIY projects, a home that needs work can even sound like a fun prospect, but there are some things to take into consideration as you begin your search. Work with your real estate agent and use the following tips to get the house you want without any major surprises:

Come Up With A Repair Budget

While you may save money on the cost of your new home by purchasing one that needs some extra work, you will have to spend additional money to make the repairs. It's a good idea to come up with a repair budget at the same time you determine how much you are willing to spend on the home. Combining these two numbers together will give you an actual budget for your total home purchase.

Look For Homes With Cosmetic Issues

Homes that need work can vary, from houses with significant structural damage to homes that need a bit of remodeling or a few touch-ups. Determine which types of repairs you aren't willing to do, such as replacing a roof or an HVAC system. You may also want to consider which types of projects you can handle on your own. For example, an older home with major wiring problems might be too much to take on by yourself, and the cost of rewiring the home might be beyond your budget. However, you may be able to do other types of repair work, such as replacing flooring or installing a new staircase.

Hire A Reputable Home Inspector

Your home inspector can be your best friend as you shop for a fixer-upper. It's his or her job to identify any and all problems with the home. Once you receive the inspection report, you can go down the list and determine which repairs you are willing to undertake and which ones you aren't. Some home inspectors may even be able to provide you with ballpark estimates for the cost of repairs, which you can use to help make an informed buying decision. Your real estate agent can use the report to help negotiate the price of the home, which can help to cover the cost of more serious issues with a home.

Talk to your real estate agent about what you want out of a home, and work together to find the fixer-upper to fit your budget.