Buying a Home to Renovate Probably Won’t Save You Money
If you are considering buying a retaining top because you want to “save money,” be careful.
New research from Porch shows that renovated homes can be as expensive as turnkey rentals when you add to the cost of renovations:
While most homeowner renovators thought they could save money, they actually spent about the same or more than their move-in counterparts. On average, respondents paid just over $ 250,000 for ready-to-move-in homes. Meanwhile, repairmen cost just under $ 200,000 on average. After the renovation, however, homeowner renovators ended up spending nearly $ 247,000 when they managed to meet their budget. Homeowners who were over budget spent more than $ 25,000 more than homebuyers who were ready to move in, totaling $ 275,741.
In other words, after all is said and done, you can get a house ready to move in for about the same price – and you don’t have to spend time and effort renovating the house.
The study also notes that HVAC and plumbing upgrades are likely to go beyond budget. In fact, basements, bathrooms and kitchens are costing homeowners more than they expected, with only 57 percent of renovators staying on budget.
If you do plan to buy a home without renovation – or if this is the only home available in your area or in your price range – make sure you check the home before making any suggestions so you know what renovations and refurbishments to take. expect. (and how much they might cost). In fact, a home inspector should be part of your home search toolbox, whether you are looking for a renovation home or a turnkey home, and we previously advised readers to find your home inspector before you find your realtor .
You can also use tools like the Porch Project Cost Guide or the HomeAdvisor True Cost Guide as a way to estimate the potential cost of renovating and remodeling your new home – and no matter which home you end up purchasing, a minimum of 4 savings is recommended. % of your income for future home renovations .