If you have a tight budget and love DIY, buying a fixer-upper might seem like a straightforward decision. Fixer-uppers are homes that need repairs and updates rather than being “move-in ready,” and can be affordable options in any kind of market. However, fixer-uppers require significant money, effort and careful planning. If you’re trying to determine whether a fixer-upper is right for you, here are the biggest things to think about:
Even the smallest home renovation can take weeks or months of time to complete. If you’re planning on renovating an entire house, expect to dedicate months of hard work to the task. Even if you hire professionals to do the hard work, you’ll be investing a lot of your time in the project. Hardcore DIY enthusiasts might be tempted to tackle all the work themselves but will need all the right skills, equipment, safety measures and more. Consider the time you’re willing to commit to before you get a fixer-upper.
When building a budget for a fixer-upper, many small projects combine into one. This can make it really difficult to get an accurate idea of how much money you’ll need or want to spend. It’s also tricky to factor the cost of the home purchase into the equation, as well. If you stretch your budget too thin on buying the property, you’ll have less available for the repairs and upgrades.
Luckily, mortgage lenders and real estate professionals can help advise you on the best choice of funding for your situation. There are special types of loans meant for major home renovations that can help with your fixer-upper project and traditional mortgages.
Because fixer-uppers can take a long time to complete, it’s important to have a stable living situation in the meantime. If you’re selling your current home and planning to move into the fixer-upper when it’s done, this can make the timing awkward and also allow expenses to pile up. You and your fellow household members will need somewhere safe to live until the property is move-in ready. If you’ve sold your current home already, that means paying for temporary lodging.
A fixer-upper might be your dream scenario, but don’t forget to assess the reality of the situation. Before taking the plunge, consider these three key things to help you make the best decision.
For over 25 years, Mike Johnson, has help Buyers and Sellers in Greater New Haven, and across the state turn their dreams into reality. TAJ REAL ESTATE, LLC is a full service firm specializing in Short Sale, First Time Home Buyers, Sale and marketing of existing Home and Condos, Rentals, FHA 203K Sale and Renovation of Distress Properties, and Investor Purchase.
Mike Johnson is a graduate of Fairfield University, and a resident of Connecticut for over 38 years. He served on the Board of Directors for Hill Health Corporation from 1976 to 1984, has served on the Professional Standard Committee of the Greater New Haven Board of Realtors for over 8 years, served as Board of Directors for that organization from 2009-2012, and on the Farmington Canal Committee for over 10 years.
Mike possesses a high degree of knowledge, experience and integrity, and strives for excellence, as such creating a reputation second to none. Whether your Home is under water (owing more than the mortgage balance), or behind on your mortgage and facing foreclosure, your solution is only a phone call away. Pick up the phone and put your troubles in the hands of a experienced Realtor.
