Buying Fixer-Uppers
Is Buying a Fixer-Upper the Right Choice For You?
| Fixer-Uppers Are Right For Me |
Fixer-Uppers May Not Be a Good Idea For Me |
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- I am familiar with building construction.
- I am comfortable hiring contractors.
- I know lots of construction trades people.
- I have plenty of cash and lines of credit.
- I have a specific budget for my project.
- My work hours are totally flexible.
- I have another place to live.
- I have few family responsibilities.
- I own lots of construction tools.
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- I know little about building construction.
- I know little about hiring contractors.
- I don't know anyone in construction.
- I'll pay for it as I go or use my credit cards.
- I have a rough idea of what I want to spend.
- I will work on this evenings & weekends.
- I need to move in as soon as possible.
- I have a lot of family responsibilities.
- I'll rent or buy the tools I need.
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Buying a fixer-upper is a risk with the potential of a significant financial reward. The trick is to minimize the risk while maximizing the potential reward. Renovation projects are NEVER 100% predictable and the surprises always cost money. The more experience you have, the fewer the surprises but renovation projects always have snags - there are just too many things not in your control. The question to ask yourself is "Can you afford to be wrong?"
The most dangerous project for a novice is the Buy, Fix & Flip projects. These projects have become increasingly difficult to carry out successfully in the last few years-even for experienced renovators. The safest financial project is the Buy & Renovate owner occupied project. Keep in mind that renovation projects are not the best place for young children and spouses often don't take kindly to the almost constant inconvenience.
If you do decide that you are ready to purchase a fixer-upper, a real estate agent who is experienced in renovating properties can be your best asset on both the buying and selling end. Should the new kitchen counters be granite or formica? Is there a way to inexpensively improve the functionality of the floor plan? What will be the value of the house when the renovations are complete? These are the kinds of questions an experienced agent can help you answer.
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