Are you looking to enter the housing market? Do you know what sort of home you are looking to buy? Have you considered buying a fixer-upper home?
Whether you are looking to buy and refurbish a house for resale or to live in yourself, there is no denying that fixer-upper homes are all the rage. However, are they the best choice?
Keep reading to see whether its worth the effort to avoid the initial high cost of purchasing a turnkey property.
Benefits of Fixer Upper Homes
There are some benefits to buying a fixer-upper first home that makes it a sensible investment.
The base price you pay will be lower than if you went for a turnkey property. Why? Because there is work that is needed to make the property ‘liveable’. The process will vary from property to property, but likewise, the base price will reflect the amount of work needed.
Buying a fixer-upper gives you an extra level of control over the final look of your home. Yes, you can decorate and update a turnkey home, but by definition, they are bought as is. Fixer-uppers, on the other hand, give you as close to a blank slate as you can get without building your home from new.
The Real Cost of Buying Fixer-Uppers
While it may seem that fixer upper homes offer a cheaper alternative to buying turnkey, some additional costs can be forgotten in the process.
You have to carefully factor in the cost of the work needed to bring the property up to your image of it, an estimated $30,000 or more. You also have the additional costs incurred by having a second mortgage, or a mortgage on top of your rental payments for your current home.
All in all, fixer-uppers can be a great investment for those with the time and money to invest. They make a great business opportunity for those looking to profit from the upsell of freshly renovated property.
If you can accept the risk of going over budget, and, if you are planning on selling the home on, the risk of not selling it on a quick turnaround, then a fixer-upper home is a great choice.
Does Restoring a House Work for Your Budget and Timeframe?
Only you know what sort of property you want to buy. The two key elements are your budget and your timelines.
Do you need to move quickly? Then fixer-upper homes are not going to be the right thing for you. Are you looking to move on a budget? Then while restoring a house might seem like the best option, it could leave you covering costs out of pocket in the long run.
The decision is yours, and you know the one that is best for you and your situation.
Whatever decision that is, we are here to help. If you are looking to buy a home or sell the one you have fixed up, get in touch, and we can help you with your listing.
Wonica Realtors & Appraisers are Staten Island’s #1 independent full-service real estate firm, serving the needs of the community for over 30 years. Whether you’re buying, selling, renting or relocating, our staff of highly trained professionals will provide quality realty services with personal attention to your individual real estate needs.