Questions You Should Ask When Buying a Fixer-Upper
There is no shortage of TV shows nowadays where people buy fixer-uppers only to turn them into unique and beautiful homes. It is really inspiring to watch some of these outdated and under-utilized homes turn into beautiful and functional homes. While buying a fixer-upper has a lot of advantages (i.e, lower cost to purchase) there are some things you should ask when shopping the housing market for the perfect fixer-upper.
- Ask your agent what is the neighborhood like- The dynamics of a neighborhood become critical when buying a fixer-upper. Will the home require a significant amount of money to remodel in order for the home to be cohesive with the rest of the block? If you put too much money into the update, therefore increasing the value of the home, and the other homes in the area are not valued at that amount, it may be difficult to resell the home and get your money’s worth out of it.
- Ask your agent if the home is in a Historic District- Purchasing a beautiful Victorian home may sound lovely, with all of the beautiful details like crown molding and wainscoting just to name a few, but it can come with a hefty price tag. Because most homes in Historic districts require prior approvals before major renovations can be completed, this can cause delay and more money being spent to meet certain criteria.
- Ask the inspector what is the state of the home’s major systems- It is a given that a fixer-upper will likely come with a lot of work and cash being spent. It is important that you choose your inspector wisely and make sure to listen carefully. It is common for cosmetic work to be needed but if there are problems with the foundation, electrical, and plumbing systems, this could mean that you have to shell out a lot more money.
- Ask the inspector if there are any hidden expenses- Ask your inspector to really dig deep into the home. Do you see signs of flooding? Is there specific permit work that is needed for any of the repairs that are suggested?
- Ask your contractor for a breakdown of the total investment- Once you formulate a plan based on the inspector’s findings, sit down with your contractor and go over different options. Discuss different options for repairs and how to stay within a budget. There are plenty of solutions that can satisfy your bottom line. Make sure you choose a contractor that understands your goals and respects your timeline.
- Ask yourself how you feel about the overall layout of the home- With the investment of a lot of time and money, it is possible to change the structural layout of a home. If you are absolutely in love with a home and have no problem taking on a very large commitment, that is great! If you are not a person who has the time or money to devote to a large project that, you need be able to envision the home (the structural layout) as it stands.
- Ask yourself if you have the time and energy to commit to a fixer-upper- This should probably be the first question you ask yourself. Are you ready to take on the commitment of weekend projects each week for the next several months? If not, are you prepared to shell out money to pay contractors to do every square inch of work that is needed in the home? You have to be real with yourself before closing on a home you might regret buying.
Fixer-uppers can be great investments. You just have to have the commitment to put the work in and make it a dream home all your own!
