Is a Fixer-Upper Worth It?
Buying a fixer-upper can be rewarding or frustrating.
Posted: April 28, 2017 by Coldwell Banker Distinctive Properties Grand Junction
Homes for Sale: Fixer-upper or Not?
How many HGTV shows can you think of currently airing that focus on purchasing a fixer-upper home rather than purchasing property that is move-in ready? Homes for sale that need a bit of TLC can be an excellent option because they allow you to renovate the home to your taste and needs. On the flip side, unfortunately, some home renovations can be more expense and trouble than they’re worth. So, before you dive into homes for sale in Grand Junction, it’s worth considering whether you’re interested in buying a fixer-upper and knowing what sort of effort you’re ready to put in. At Coldwell Banker Distinctive Properties, we want you to buy property that fits your needs at the right price-point. Here are a few things to consider before diving into a fixer-upper.
- Know Your Loan Options
First and foremost when it comes to buying a fixer-upper is the concern about cost. This includes things like which home renovation needs are worthwhile and which are money pits (which we will get to in a moment). Equally important in many home buyers’ minds is the question of how to pay for all those home renovations once they’ve purchased the fixer-upper. It may sound wonderful to find just the right Grand Junction home that has great bones but needs some work, but it’s another reality entirely to figure out how to pay for all those changes and repairs out of pocket if you don’t happen to have a nice large sum hanging out in a savings account.
Before you delve into the process of hunting down the right fixer-upper, figure out how you’ll pay for all the necessary repairs. As is generally the case, we suggest shopping around for mortgage options. Be sure to mention that you’re interested in buying a fixer-upper and see what suggestions each lender offers. In addition, you may want to look into an FHA 203K rehab loan. This particular variety of home loan is designed for those who want to purchase a home specifically to renovate. A 203K rehab loan includes the cost of renovations in your full mortgage amount so you can pay for the contractors and repair work with your loan rather than emptying your savings.
- Focus on Function
When it comes to actually choosing the right fixer-upper, there are several areas of concern to take into account before you dive in and put in an offer. First, look at the overall function of the house - Is the roof in good condition? Does the heating/AC system needs repair work? Does the electrical offer enough power, and does the plumbing provide enough pressure? Maybe most important of all, how is the structural integrity of the home? Repairs to the foundation, plumbing, electrical, and HVAC can be some of the most costly things to take care of, so it’s particularly important to pay close attention to cracks, leaks, bubbling paint, roof damage, and so on. Unfortunately, many fixer-upper homes for sale are sold as-is, without repairs or concessions from the seller; the reduced price generally takes into account the repairs the seller knows will be needed, so don’t count on the seller taking responsibility for replacing the roof before you purchase it. However, even if you choose to purchase a fixer-upper that needs a lot of love, be sure to get a thorough inspection so you don’t come up against surprise repair needs.
- Discuss Your Limits
Part of what HGTV shows tend to gloss over is what it can be like living in a construction zone for months. Before you decide to take the plunge on a fixer-upper, you’ll need to discuss with your family whether it’s worthwhile to, for example, be without a functioning kitchen for a couple of months while you renovate. Feel free to ask your Coldwell Banker Distinctive Properties real estate agent if they know of any general contractors who can give you an estimate on the work you want to do. As an example, it generally takes a lead time of around three weeks after installing new cabinetry before new granite countertops will be cut and ready to install, so that’s at least a month without a useable kitchen surface. If you have three little ones at home, living in a construction zone for months on end may be too complicated and hazardous, which means finding a fixer-upper that needs less work or balancing two mortgage payments until your new house is ready to be lived in.
Ready to Buy a DIY?
If you’re ready to put in the time, effort, and expense of taking on a fixer-upper, the rewards can be bountiful. Not only will your home’s equity improve, you’ll end up with a home renovated just how you want it! If you’re ready to start the homes for sale hunt in Grand Junction, call the team at Coldwell Banker Distinctive Properties today to get started!
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