Buying a Home - Fixer-Upper You Want to Avoid
Author:
• Friday, March 12th, 2010

If you’re a homeowner on a tight budget, you may have contemplated purchasing a fixer-upper just to get your foot into the real estate market. While the benefits of owning a may be appealing, the outcome can be disastrous for your finances if you select the wrong fixer-upper.

The ideal property would require very minor fixing up such as removing outdated wallpaper or linoleum. However since there are many other buyers and investors looking for simple fixer-uppers, you’ll have a hard time locating one. But don’t give up hope, there are certain fixer-uppers other buyers will overlook, especially if they’re visibly unappealing from the street.

The extreme opposite of the simple fixer is the home requiring significant renovation such as foundation work, or adding walls, adding more bedrooms and much more. Unless you have a rich uncle or a contractor in the , you should walk away from these type of , especially if there are significant health violations (like mold) or can’t be lived in because of extensive damage to the roof or floors. Let’s study the 3 main concerns when buying this type of fixer-upper:

1) Bank Approval May Be Difficult – A bank may deny your until you complete a minimum number of repairs. If your budget can’t afford these repairs, you won’t be approved for a .

2) Repair Costs Can Exceed What You’re Willing To Spend – If the reason you purchased a fixer was due to financial limitations, how will you come up with the money for additional repairs? Don’t be fooled into thinking a basic cosmetic fixer won’t need some minor reconstruction work. If you still decide to buy a home needing significant remodeling work, be sure you set aside additional funds for future projects.

3) Be Prepared For Extra Stress And Commotion – Going through a major remodel can disrupt your daily life. Not only will you experience extra stress, you’ll have to take time off work to periodically monitor projects. Make sure your family has discussed how to cope with these additional inconveniences.

The best type of fixer-upper strikes a happy medium between the first two extremes: a property needing simple cosmetic repairs you can accomplish by yourself or with the help of an experienced handyman or contractor. Choose a home only needing minor cosmetic work such as a new paint job, replacing flooring, or upgrading fixtures. Don’t buy a property needing major repairs like a complete rewiring job, replacing a roof, or foundation work. If you’ve been fortunate to come across a property fitting these criteria, be sure to:

1) Consult with your local city’s building department to determine if the changes you want to perform are acceptable. Most cities have restrictions and codes regarding wiring and plumbing remodels, setback distance, height limits, and other restrictions.

2) Consults with a professional such as an architect, contractor, or engineer before you start the process of adding a second floor or extra bedroom. This will reduce the chances of investing time and money into a project that may not be feasible.

3) If you’re going into a fixer-upper purchase with another partner, make sure everyone involved discusses how they’re going to cope with the added stress and extra responsibilities of supervising construction activities.

Want to find out more about buying an Orange County starter home? Then contact these local Irvine Realtors or Santa Ana Realtors to help you find one.


Related Blogs


  
Tags: , ,
Category: Real Estate  | Tags: , , , , , , , , , , , , , , ,
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Leave a Reply

CAPTCHA Image
*


  
«
»