Buying A Home - Fixer-upper You Want To Avoid

Buying A Home - Fixer-upper You Want To Avoid

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If you're a homebuyer contemplating the purchase of a fixer-upper, there are some facts you need to know before buying one. While the concept of making a profit by fixing and turning over homes seems attractive, the outcome can be financially devastating if you select the wrong type of fixer-upper.

The best type of fixer to buy would require a few simple repairs such as scraping off ugly old wallpaper or replacing outdated fixtures. But because there's a lot of competition from other home buyers and investors searching for these type of properties, it's rare you'll stumble across these type of properties. While these type of properties may be rare, you'll find other opportunities in fixers passed up by these buyers.

The extreme opposite of the simple fixer is the home requiring significant renovation such as foundation work, moving or adding walls, adding more bedrooms and much more. Unless you have a rich uncle or a contractor in the family, you should walk away from these type of properties, especially if there are significant health violations (like mold) or can't be lived in because of extensive damage to the roof or floors. Let's study the 3 main concerns when buying this type of fixer-upper:

1) Bank Approval May Be Difficult - A bank may deny your loan until you complete a minimum number of repairs. If your budget can't afford these repairs, you won't be approved for a loan.

2) Beware Of The Money Pit - While the reason you may be considering a fixer-upper is due to financial constraints, ask yourself if you can afford to spend the additional money to repair the place. Even a simple cosmetic fixer requires some money to repair. Be sure to set aside additional funds to cover these renovations.

3) Be Prepared For Extra Stress And Commotion - Going through a major remodel can disrupt your daily life. Not only will you experience extra stress, you'll have to take time off work to periodically monitor construction projects. Make sure your family has discussed how to cope with these additional inconveniences.

The best type of fixer-upper strikes a happy medium between the first two extremes: a property needing simple cosmetic repairs you can accomplish by yourself or with the help of an experienced handyman or contractor. Choose a home only needing minor cosmetic work such as a new paint job, replacing flooring, or upgrading fixtures. Don't buy a property needing major repairs like a complete rewiring job, replacing a roof, or foundation work. If you've been fortunate to come across a property fitting these criteria, be sure to:

1) Consult with your local city's building department to determine if the changes you want to perform are acceptable. Most cities have restrictions and codes regarding wiring and plumbing remodels, setback distance, height limits, and other restrictions.

2) Don't invest a lot of time and money into a second story addition or adding a room without first getting the professional opinion of an experienced contractor, architect, or engineer.

3) If you plan on purchasing a fixer with a partner, make sure to sit down and discuss how all parties will deal with the inconveniences and headaches associated with remodeling such as time off work and supervising contractors.

About the Author:
Looking to find the best deal on a starter home? Then contact these local Irvine Realtors or Santa Ana Realtors to help you find one.



Article Originally Published On: http://www.articlesnatch.com


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