When you think you are ready to buy a home and can’t wait to move out of your temporary one, take the time to think about what kind of house to purchase. Carefully consider if you will be happy to invest in new home construction, a move-in ready home or if looking up fixer upper houses for sale sounds the most exciting way for you to go. Because buying a home is one of the most significant financial decisions you have to make, it is prudent that you research your requirements well, review the options available to you and plan your next steps wisely. Here are some helpful insights to guide you so you can find the best option that makes sense for you.
Buying a fixer upper usually means having to pay a lower cost for the property but don’t forget to weigh the initial savings with the estimated cost of the renovation project. If you’ve never done it before, note that you need to get the property checked by specialized inspectors to ensure you’re not making a mistake with purchasing a house with a lot of problems. Even if you pay a low cost initially, the renovation may potentially lead to unexpected costs you that you do not want to pay for. On the other hand, if you succeed with a good renovation, you raise the value and up the resale potential of the home at the same time.
When you renovate a fixer upper, you are adding value to the property through the home improvements you spend on. The major goal of the renovation project is to increase the property value ideally less than what you have to spend on for sprucing up the place. By investing in upgrading electrical, plumbing and other modern features, you also amp up the potential of earning profit from a resale if and when you decide to do so in the future.
With a fixer upper, you have control over how much you will spend on renovations, which contractor to hire for the project or even do it yourself if you have the skills for it hence you can generally pay less compared to buying a newly finished or move-in ready home because usually when you buy a house that was renovated by others you are also paying for the profit they require for their renovations works. By choosing your own contractor or doing it yourself, you have control over the materials being used and the quality of workmanship being done.
The finished product is to your liking and you get exactly what you want and not somebody else’s design because you’ve been involved from day zero when it comes to picking the color scheme, flooring, finishes, fixtures and everything else that matters to you. And because of your involvement with the renovation process, you gain repair knowledge which is helpful for proper maintenance of the home.
If you are a first-time home buyer, you would probably prefer a home that is newly finished and ready to move into however there is nothing to lose in shopping around for more options and consulting with a reputable contractor who has the eye to see past the broken windows or crumbling paint on the walls and instead recognize a property for its value and potential for a resale profit.