Is That Fixer-Upper Worth It?

Buying a / home is a huge financial decision for anyone to make. Home prices have become incredibly affordable. When partnered with low interest rates and the inventory available, your options as a home buyer are tremendous. While a move-in ready home is fantastic, some buyers are looking at buying low and then fixing it up themselves to get the best deal possible. However, how do you know if that fixer-upper is worth it?

There are several things you have to consider before purchasing a / fixer-upper. Everywhere you turn, it seems another TV show is touting how easy it is to make improvements to your home yourself. Looks can be deceiving. Fixing up a home tends to take more time and money than you think it does. However, if you're willing to do a bit of research and planning, the payoff can be big.

Simple things like painting and wallpaper can generally be done by just about anyone. However, the more intricate work, like rewiring or plumbing repairs may require a more experienced hand. Depending on the amount and extent of repairs needed, you could be looking at living in a construction zone for several months. However, that shouldn't be a deterrent if you love the / home and are getting a great deal.

As I've said before, a home inspection is important for any / home buyer! This doesn't just include the inspection you do yourself when looking at potential homes. The smart buyer hires not only a professional home inspector to check out the roof, plumbing, electrical, etc., but also invests money in an inspection by a structural engineer to assess the structural integrity of the home. This can help you evaluate if the home is worth fixing up or can even be fixed up at all. Always make sure to get written estimates of repair costs to help you determine your offer, if you choose to buy.

Re-painting, replacing carpeting and general aesthetic touches don't need permits. However, structural changes, plumbing repairs and electrical work generally tend to need a building permit. If you do the work without a permit, you could run into trouble when you try to resell your / home in the future. It's not worth the hassle. Check with your city to find out if you need a permit to do the work you want done, how much it will cost and how long it will take to get the permits necessary.

Once you've gathered all your estimates, add another 10-20% for those unforeseen issues that always tend to arise. Talk to your REALTOR® about a fair offer on the / home in question. Find a recently sold home in the neighborhood that is comparable to what your home will look like once the repairs and updates are completed and deduct your estimated costs to repair. This should give you a fair offer price.

Move-in ready / homes are great. Buying a fixer-upper can be a fantastic investment as well. If you are willing to put in the time and effort necessary to bring that home up to date, a fixer-upper is definitely worth it. But only you can decide if that's the case for you! Contact me when you are ready to start looking.

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Originally posted on my Nothern Virginia Homes real etate blog here: http://northernvirginiahomes.net/2012/04/26/is-that-fixer-upper-worth-it/.