When You Should Consider Buying a Fixer-Upper (and When You Definitely Shouldn’t)
Top renovations can usually be considered the domain of home flippers, but would-be homeowners also come into play by buying and restoring properties in need of TLC .
People buy remodelers as their primary residence for a variety of reasons beyond their initial affordability and potential return on investment. For example, the Renovation Top, which is also a historic home, has, well, history: These properties can have rich histories, and restoration can transform them into character-filled period pieces. They can also serve as a blank canvas for a homeowner with a strong sense of style, or a combination of both.
While a creative vision for a home in need of an update is one compelling motivator for buying a fixing top, it doesn’t have to be the only one. Here are a few more factors to consider before diving.
When to Consider Buying a Locking Top
The decision to buy a fixing top requires a delicate balance of time, energy and (of course) money.
Do you want something available in advance
Renovated homes often sell for less than other homes on the market due to their renovation and refurbishment needs. People who can see beyond imperfections and are willing to invest in structural and cosmetic upgrades over time may find great value in these cheaper properties. You may also face less competition from other buyers.
Note that fixer may not save you money overall compared to a move-in ready home if you factor in both the purchase price and the cost of repairs. However, you will likely increase the value of your property quickly as upgrades are made, you will already have more capital than if you bought a more expensive house, and spread the costs over time.
You want more space for your money
Your dollars can go further if you need space. It is possible to get a bigger house and/or more property for less money if you are willing to buy a house with more flaws and invest in renovations over time. You can also find a house in an area that you might not otherwise be able to afford— buy the worst house in the best neighborhood, so to speak.
House needs (mostly) cosmetic updates
Cosmetic fixes are faster and cheaper than major structural updates , so you need to know what problems need to be addressed, how urgent they are, and how much they will cost. If your remodeler needs significant HVAC, plumbing, plumbing, or electrical work, a new roof or foundation, or a complete kitchen or bathroom(s) remodel, you need far more money, time, and professional labor than with such projects. like painting walls, repairing floors, and replacing doors.
Do you like to do it yourself
If the bulk of your renovation is cosmetic and you enjoy doing things yourself, building a project home can be both enjoyable and rewarding. It’s cheaper to do some of the work yourself (compared to hiring professionals) and you’ll have to get your hands dirty. However, know your DIY limits and don’t take on more than you can handle.
You can be patient with the process
Top renovations are a labor of love, and if you’re planning to move in right away, you’ll probably live in a mess for a while while you work on the renovations. Or you will wait in your current space until the updates are completed. Either way, you won’t see the benefits of moving into a finished home right now.
When you should avoid fixative-top
If the opposite is true of any of the above, you may want to reconsider your decision to purchase a lockdown top. If you need a home that’s ready to move in right away, or if you’re maximizing your budget just by buying, a remodel top is probably not for you. You also need to do your due diligence: don’t skip inspections and take the time to get a quote on necessary repairs so you know what you’re getting into before you make an offer and sign a contract.
A home inspection is an absolute must to identify any major structural damage or problems. Spruce also recommends investing in roof certification (if the seller has not provided this information), pest testing, sewer line inspection, and engineering reports to identify natural and geological hazard risks.