If you look up homes for sale in your area on any given day, you will probably come across a few that are considered fixer-uppers. A fixer-upper is a house that needs some work, and the price on the house typically reflects the amount of work it needs. If this is something you might want to do, here are three things to consider before you make the plunge.
How much work does the house need?
Fixer-uppers can come in many sizes, types, and conditions. In some cases, these homes will simply need surface repairs, such as new paint and flooring, and possibly an updated kitchen. In other cases, the homes might need to be completed gutted, and some may even need water damage repairs or foundation repairs. Before you buy a fixer-upper, you should know exactly what work it will need as well as the total amount of money you will spend to make the repairs.
Where will you get the money to pay for the work?
Secondly, it's important to consider where you will get the money to perform the work. There is a chance you might qualify for a loan that offers a cash-out option. If so, this is a perfect solution for the problem. If you cannot get a loan, you might be able to afford to pay for the repairs little by little out of your income. This is another great option; however, it might take several years to complete all the work if you pay for it as you go.
Can you do the work yourself?
Finally, you should factor in how much of the work you can do yourself. When people purchase fixer-uppers, it is often because they know how to complete the repairs themselves. By making the repairs yourself, you can save a lot of money, because you will not be paying for labor. You will only have to pay for the materials needed to complete the job. The downside to this is that it too can take time to complete work if you do it all by yourself, especially if you have a full-time job on top of this.
Fixer-uppers are great types of homes for some people to purchase, but they are not right for everyone. In addition, it's always important to get a home inspection if you are buying a fixer-upper just so you can know for sure what problems the home currently has. To locate a fixer-upper to purchase, contact a realtor today.