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Real Estate Article Series
Fixer-Upper Homes: When Is It Too Much Work?
The
term “fixer upper” may often strike fear in the hearts
of home buyers. There are no strict measures
in defining exactly what a fixer upper is. It could mean a
historical house in need of minor repairs or it could mean
a run down house with sagging floors, a leaky roof and a serious
foundation problem. Still, fixer uppers represent a great way
for some home buyers to move up into larger homes at a fraction
of the cost, provided their willingness to accept the effort
and costs needed to make the necessary repairs and improvements
the home needs.
Don’t
let the term “fixer upper” discourage you from considering
them in your search of buying a home. By all means, consider
these homes during your house hunting escapade, but you should
take your time and carefully look into all of the repairs needed
in order to make the house a home. More important, you will
need to figure out how much it will cost you. A seemingly great
bargain can turn into the money pit if you don’t do your homework.
In your quest for a fixer upper, you can check out various
real estate web sites on the internet and in your local newspaper.
Even if you’re new to house hunting, you will shortly
learn frequent discrepancies in between a house that seems
too good
to be true and reality. Even if you pull up to a house that
seems to live up to the promises that were advertised, have
your real estate agent take you inside the house for a walk
through so you can get a better look. Many fixer upper houses
can look extremely appealing on the outside, when the inside
can be a completely different story. You will learn soon enough
how to recognize fixer upper houses that are worth further
investigation and the houses that are not.
Even if you decide that a house in need of a substantial number
of repairs, don’t let the prospect of a great buy tempt
you into ignoring the house’s problems. Many fixer uppers can appear
intoxicating, when buyers are looking for the greatest deal
of all times. Sometimes the seller of the fixer upper may try
to make the problems seem less complicated or try to convince
you that the repairs will be an easy fix to make a quick sale.
They may also try to discourage you from having an appraisal
on the house, where the appraisers may be able to find more
problems in the house and therefore reduce the value of the
house even more.
Never
let a seller pressure you into buying a fixer upper or
offer you a special once in a life time deal if you agree
to buy the house right then and there. Never make a same day
decision when buying a house. Buying a house is an important
financial commitment that should not be taken lightly and should
be carefully considered. Buyers need to allow themselves enough
time to consider how much work, time and money it will cost
them before committing to a house. You’ll be surprised how
much different that great buy will seem after a day or so of
consideration and after looking at other potential houses.
Buyers
should also find out how the asking price compares with
the prices of other houses in the area. Are there any
other fixer upper houses in the neighborhood? Have any other
nearby houses been renovated and sold? What do you expect to
get for the house if you renovate it and decide to sell it?
There is nothing more aggravating to a home owner than renovating
a home with the intent to make a profit, only to discover the
real estate market had turned bad. If home values are depreciating,
the home you purchase may be worth less than you originally
paid for it even after all the hard work of making the home
improvements and repairs.
Once you find your dream fixer upper and have already been
pre-approved for a mortgage, you must now find yourself an
experienced house inspector to perform a thorough inspection
before you commit to the purchase. Sometimes house inspectors
can turn up significant problems’ that the interested buyer
was not aware of. # # # # #
SolveYourProblem.com : 2007
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