Are you considering buying a “fixer-upper” home? There are several reasons why people opt for this type of property. It could be to save money, build equity, or make an investment. But how do you know what to look for when starting your search, what’s fixable and what’s not? The answer won’t be the same for every buyer so here’s a few things to consider before you get started.
What’s Your Cash on Hand?
How much money do you have to put into projects after purchasing the property? Knowing your general budget can help determine what fixes would fit into that budget. When it comes to a “fixer-upper,” it’s essential to have a budget that takes into account more than just the purchase price of the property. Renovations and repairs can be costly, and unexpected expenses can quickly add up. Before starting your search, it’s crucial to know how much cash you have on hand and how much you’re willing to spend on repairs and upgrades.
For example, if your budget is $30,000, you may want to focus on properties that require cosmetic upgrades, such as paint, flooring, and light fixtures, or that a few key upgrades would go a long way. These projects are generally less expensive than extensive structural repairs. You also want to account for surprises, while your home inspection prior to purchasing will tell you a lot, your inspector isn’t going to be busting walls open. Remember when buying an older home many people have lived there and you never know 100% what you might find until you’ve already committed to a project.
What is Your Skill Set?
Or, what projects are you willing to take on yourself? The second point to consider when buying a “fixer-upper” is your skill set. What repairs and renovations are you capable of doing yourself? This can greatly impact your budget as labor can often be equal or greater to the cost of supplies. However, some repairs require licensed professionals, so it’s essential to be aware of your limits and ensure you’re not taking on anything beyond your capabilities.
For example, if you’re a skilled DIYer, you may want to take on projects such as painting, installing flooring, or landscaping, which can save you money on labor costs. On the other hand, if you’re not experienced in electrical or plumbing work, it’s best to leave those projects to licensed professionals to avoid any safety hazards.
What’s Your Timeline?
The final point to consider when buying a “fixer-upper” is your timeline. Does the remodeling need to take place before you can move into the home? And if so, can you afford to pay for two places?
Does the remodeling need to take place before you could move into the home? For example, if you have a hard a out for your current housing, you may need to find a property that’s move-in ready or requires minimal repairs. Alternatively, if you have more time and flexibility, you may be able to take on a property that requires more extensive renovations and move in later.
Purchasing a “fixer-upper” can be a smart investment, but it’s important to be realistic about what you can afford and what you’re capable of handling. By taking the time to evaluate your finances, skill set, and timeline, you’ll be well equipped to make an informed decision. Remember, a realtor can be your best ally in this kind of venture, so don’t hesitate to ask for their guidance and expertise. They can help you identify properties that meet your budget, provide recommendations on reputable contractors and vendors, and offer insights on what’s feasible and what’s not.
PNW Real Estate Blog 
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