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Finding a move-in ready home can be daunting, especially if you don’t have enough funds, so if you are seeking the best value home at an ideal location and don’t have the budget to buy, then you might consider buying a house that needs some work. Buying a fixer-upper will work as a shortcut to get the homeownership or can be an ideal option for repeat buyers to afford a better neighborhood. However, you need to be sure about the cost of renovation and the timeline before making any decision. We spoke to the real estate experts of AK Premier Real Estate Services in Raleigh North Carolina to get some advice on what to consider when buying a home that needs work, and here’s what they suggested:
Fixer-uppers usually sell for lower prices as compared to homes that are ready for move-in, but they come with the challenge of some sweat equity from doing renovations,but you settle on your next purchase, it is always a good idea to consider the renovations that need to be done. Seemingly simple projects can actually become a complex one, and the cost can end up higher than you have estimated. Thus, it is essential to weigh these considerations to decide if the fixer-upper will be the right choice for you or not.
- Identify the DIY Tasks
After watching TV remodeling shows, you might think that home improvement is a snap. Attempting a difficult remodeling project that you are not a master in will take longer than you think and might lead to a waste of time without giving fruitful results. Identify the tasks that you can do yourself, like stripping wallpaper, repainting, and tasks that you’re familiar with. Leave the tasks of plumbing and electric work to the professionals.
- Estimate the Renovation Cost
Before making a final decision on buying the house, get your contractor to do a walk-through of the house to get a written cost estimate of the renovations that need to be done. For the work you will be doing yourself, estimate the cost of supplies. Don’t forget to tack on 10% to 20% for the unforeseen problems that usually arise while renovating a fixer-upper.
- Check For Permit Costs
Some projects require a permit while you do it yourself, so ask the local zoning office about the cost of the permits if you need any, and what’s involved with obtaining the permit. Doing the work without a permit can cause problems when you are reselling the home, so decide if you want the contractor to arrange a permit for you or you want to get it yourself. Getting the permit can be frustrating and time-consuming as the inspector can force you to do some additional work as well. You should factor in the aggravation and time of the permit to your plans as well.
- Cost of Structural Work
A structural engineer can charge up to $700 to inspect the architectural work of the home to be confident that you have evaluated all the additional costs. Getting a written estimate for all the repairs can be a wise move. You shouldn’t buy a home that needs major structural work unless you’re:
- Getting a discount
- Sure to uncover the extent of the problem
- Sure of getting the issues fixed on budget
- Obtaining a written estimate for all repairs
Summing It Up
If the weight of the above-mentioned considerations is in your favor, then you should consider buying the home, but be extra careful while estimating your fair price offer to be on the safe side.
