You might be in the market for your dream home, but you’re having a hard time finding a home that suits your lifestyle and design taste, purchasing a fixer-upper might be the best route for you. With a fixer-upper, you have the freedom to create your perfect home, while also increasing your home’s value in the long run. Here are some things to consider when purchasing a fixer-upper.
You might be able to own your home faster
Many factors keep people from owning their dream home, and high home prices can be a huge determining factor. Choosing a fixer-upper will likely have a more budget-friendly price tag, but you will need to factor in the cost of all the repairs you want to do. This will depend on the condition of the property, how much work you want to put in, and how much contracted work you will need to pay for. There are basic cost-effective home improvement tips you can follow, but the more structural changes you make, the more it can cost.
However, when you get a mortgage with the intent of immediate renovations, your lender will likely have more consultations, appraisals, and inspections that will follow. They want to make sure they will get their money back on their investment. This can also prove to be beneficial, as you can often put more money on your mortgage to cover the costs of the renovation upfront.
Be realistic about your skills
There’s a difference between choosing a home that requires minor repairs that you can handle on your own with the help of a YouTube tutorial and demolishing walls, adding walls, and pulling out all your kitchen cabinets. The more you can do on your own, the more budget-friendly you can make your repairs. If you would prefer to hire a professional, you could be looking at tens of thousands of dollars in repairs.
A renovation will disrupt your life, so ensure that you have sorted out the details. If you want to continue living in the home during reno’s you may have to be okay with living out of a suitcase. If you’re going to stay elsewhere, that can be stressful as well, depending on how long your renovations will take.
Choosing your location
If you’re planning on gutting your new home, the house might be the least important part of the purchase. Choosing a neighborhood that is fitting for you, close to amenities, and somewhere you could see yourself for an extended period of time is important.
Consider choosing a home that is not located on a busy street or in the downtown area of your city. Choose somewhere that will be more conducive to renovations and having many people in and out of your home, without disrupting everyone around you.
Here are many other things to consider when buying a home.
Choosing your layout
Buying a home is an investment. If you’re a single person or young couple, you want to consider what the future holds. The most profitable layouts include three bedrooms and two full bathrooms. Whether or not starting a family in the future is in the cards for you, the resale value of your renovated home will skyrocket when you have ample space. It will also be appealing to the most significant number of buyers, leaving more opportunity to make a high return on your investment.
A proper inspection
Finding critical issues in your future home is vital before you start tearing parts of it down. Of course, you want to ensure you do this when purchasing any home, but it’s critical in a fixer-upper situation. You want a thorough inspection to ensure that the most expensive parts of the house don’t also need to be repaired. Your HVAC system, plumbing issues, the foundation, the roof, and electrical issues can throw a wrench into the cosmetic changes that you want to make.
Buying a fixer-upper can be exciting if you’re ready to put in the work. A home that is your style and exactly what you want can mean that your sanctuary is always ready with a warm welcome. While there’s much more to consider when purchasing a fixer-upper, the challenge shouldn’t keep you from fulfilling your renovation dreams.
Greg Covell is a Vancouver area Realtor who is dedicated to helping homeowners sell their home or buy their dream home. He services the areas surrounding Vancouver Canada such as Maple Ridge, Langley and Pitt Meadows.