Skip to main content

Should You Buy A Fixer-Upper? How To Assess The Real Cost








House hunting is a nearly inevitable part of life, especially when growing a family. The average American moves about 12 times in their life, and different types of homes often correlate with different stages of life. If you are looking to abandon the apartment life but still pinch pennies, a fixer-upper might be an attractive option. 


But is it a viable option for your family?


This guide will help you assess a potential fixer-upper and decide if the initial price is worth the work. 


Why Buy A Fixer-Upper?


First-time homeowners, or those with a specific home vision, might love the price and challenge that a fixer-upper offers. These homes are almost always available for a lower price than a pristine house, offering you the opportunity to save on the upfront cost. Once the home is yours, you can break out your tools and get to work on renovations. 


But while 40% of homeowners across five of the nation's biggest centers plan to renovate this year, not every remodeling project is created equal. This is the debate with fixer-uppers. 


"The ideal fixer-uppers are those that require mostly cosmetic improvements — paint touchups, drywall repairs, floor refinishing — which generally cost much less than what they return in market value," according to This Old House. "New lighting fixtures, doors, window shutters, and siding, as well as updated kitchens and bathrooms, are also lucrative improvements."


Anything beyond that, such as major structural changes and additions, might be outside of a frugal homeowner's budget. That's why it's essential to assess the true cost of the home.


How To Calculate The Home's True Cost


It's important to remember that the cost of a fixer-upper stretches through the years of renovations ahead. When assessing the true cost of the home, consider the following factors. 


  • Price out renovations.: This may seem tedious, but it can be costly if you skip this step. Make a list of the renovations you want to make, at least within the first five years. Then do research on the cost of labor, if you will be hiring a contractor, as well as materials.

  • Know your DIY limits.: You might buy a rundown home with the intention of diving into DIY projects, but are you being too ambitious? Know which projects you can realistically complete yourself and know which are best left to a professional.

  • Request an inspection.: This is an essential step. A certified home inspector can catch leaky pipes, a faulty roof, basement mold, broken foundation, or other hidden problems that will be costly down the line.

  • Consider the local market.: If you are fixing the house with the intention to eventually sell it, be realistic about the housing market. Work with a realtor to determine how much the home will sell for if restored. You might actually end up losing more money than it's worth.

  • Be skeptical.: When touring the home and speaking with a real estate agent, ask questions every step of the way. A realtor is showing you the home with intention of making a sale, not to tell you the whole truth.

Throughout your home hunting process, remember that you are not locked into a home until you sign for it. You have options as a potential buyer.


"Most home inspection contingencies let you go back to the sellers and ask them to do the repairs, or give you cash at closing to pay for the repairs," according to houselogic. "The seller can also opt to simply back out of the deal, as can you, if the inspection turns up something you don’t want to deal with."


And if it's too much to deal with, it is probably not the right home for you. Stick with your search and be selective. You deserve to live in a home that makes your family comfortable. 

Comments

Popular posts from this blog

Copycat Boston Pizza's Bandera Bread

Have you ever had a craving for something but then once you looked at it you realized, I can make that myself for next to nothing? That's how I felt last night I thought about ordering in some food but then realized I really don't want to spend any money. I really wanted pizza bread from Boston Pizza. So I recreated it and oh my goodness was it ever good. Try some of these great recipes too!  Pizza Bread Dough 1 cup warm water 1 tsp instant yeast 1 tsp sugar 2 cups flour  Seasoning 1 tbsp melted butter 1 tsp garlic powder 1 tsp onion salt 1 tsp parsley 1 tsp rosemary 1 tsp basil 1 tsp oregano 1/2 tsp sugar 1. Combine the water, yeast, and 1 tsp of sugar in the mixing bowl and let stand for 5 minutes. Add the flour and salt and mix until a ball of dough forms. Roll ball onto a floured counter top and knead for a couple minutes.  2. Put dough in an oiled bowl and let rise for 30 mins in a warm place with a clean cloth draped over top. While your doug

DIY Table Revamp - Guest Post

Hi all! I'm Tiffany from This Motherhood is Brought to You by Xanax and I am so excited to be a part of the Guest Post Swap and to be Amanda's swap partner! I love love love her idea on how to make indoor snowballs with egg cartons. I am definitely going to have to try that with my kiddos since my smallest one has decided that it has to snow for Christmas. Poor baby doesn't know snow is hard to come by in Alabama :( For my guest post I wanted to share a little DIY with you guys that involves duct tape! A few months ago my daughter's little chair that goes with her table she sits at every day tore and she made it worse by pulling all of the stuffing out of the seat! What started out as a quick fix turned into a great idea. She loved her seat so much that she has now decided that her table has look cool too so being the smarty pants that she is, she tore her table!

Amazing Ways To DIY Your Nails In The New Year

Having beautiful fingernails can really boost a woman's confidence. Not only do they feel sexy and sassy but they look well maintained and professional. There are a number of different styles of manicures you can get done professionally but they can be costly and if you are trying to stick to a budget and save money it is best to give DIY a try. These beautiful nail designs are easy to do and look fantastic. There are some that are more intricate and some that are simple but all will be amazed that you made them yourself. Try using small gems and crystals at the tips to add a touch of sophistication.  Tips make a world of difference and they can be as easy as you wish. There are so many beautiful polishes that have amazing colours you can match. These simple nail designs can be done by any busy lady and make a lasting impression to anyone who comes across them. Hot Beauty Health has all the instructions for these super simple nail designs. There are a large number