A fixer upper comes in many packages. Some are foreclosures; others are government seizures; while others are just run down due to owner neglect. In each case, the fixer upper has two elements that usually hold true. They will require lots of work, and they can save you thousands of dollars.
Count the Cost
While a restored older home holds a certain charm, you must count the cost before buying such a home. In the end, your purchase price amounts to the cost of the home plus the materials and labor to repair it.
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Therefore, you will want your listing agent to give you a CMA or a Comparative Market Analysis. Wathen Realty Group can provide you with one. Next, have the home professionally appraised. Then, you will need realistic estimates (not guestimates) that will include materials and labor. Be sure to include your labor when estimating repair costs.
With these figures in mind, you will be in a better position to make an offer that you can live with.
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Minor or Major
Do the improvements include simple repairs like paint or appliances or is there significant structural damage? This can mean the difference between a $300 repair and a $3,000 repair.
Major repairs like foundation upgrades, completely rewiring a home, or replacing a roof don’t need to kill the deal. However, you need to factor this cost into the cost of purchasing the home and make your offer accordingly.
If you plan to purchase a fixer up, we can discuss the ins and outs. With this in mind, when you find that perfect home, you can make an informed choice that you can live with.
