When purchasing your first home, there are a variety of choices you must make. When it comes to taking the plunge and purchasing a fixer-upper as an investment option, one major decision could be whether to take on the risk or take your time looking. Fixer-uppers offer many potential advantages that should be given serious thought as you search.
One of the main advantages of purchasing a fixer-upper is its lower price point compared to move-in ready properties, making it easier to enter the housing market while leaving you with extra funds after closing on it. Plus if you do any of the work yourself it could save even more.
When buying a fixer-upper, the power is in your hands to decide how it looks when complete – like having your very own blank canvas! Don’t feel constrained by original plans – instead make modifications that meet your personal taste and meet all of your needs perfectly. Plus, as the person taking on all the work themselves you can decide what projects come first and invest either in terms of time or finances.
Potential Equity Increase
Fixer-uppers offer potential equity increases due to increased values once renovations have been completed, giving you the potential for an eventual return on your investment should you decide to sell later. With some hard work and patience it may even be possible to turn a profit.
Chance to Learn
Fixer-uppers provide you with an opportunity to develop new skills. From taking on DIY projects and tasks yourself to working with experts to make your dream home come to fruition – fixing-up can teach you something new about home construction or improvement and it could even teach you valuable life lessons that could apply elsewhere in your life!
Pride of Ownership
Fixer-uppers offer a wonderful sense of pride of ownership when completed. At the end of the work day, you’ll know you made your dream home come true thanks to all your own hard work; and since there won’t be anyone to judge it. Instead, all that counts is making sure it is exactly as desired by you and you alone!
10 Things to Check Before Buying a Fixer-Upper
Before you purchase a fixer-upper property, here are 10 items to keep in mind when looking to purchase one:
1. Conduct an Inspection: Get professional inspection services to look over the structure and foundation. Foundation repair, roof repair and other major structural repairs can be extremely costly.
2. Check for Pests: Contact a professional to investigate for signs of termites or carpenter ants in your home or building.
3. Conduct Research of Local Laws and Regulations: Before commencing any project, be sure to investigate any local zoning laws, building permit requirements, or other rules and regulations which could impede its completion. Checking with local authorities could reveal any restrictions which could inhibit your project from moving forward successfully.
4. Assess Your Plumbing System: Make sure your professional checks your plumbing system to ensure everything is in working condition.
5. Assess Electrical Wiring: To ensure all electrical wiring is up-to-date and safe to use.
6. Test for Radon Gas: You should get tested for radon gas as exposure can be detrimental to health. The odorless gas poses serious threats that should not be underestimated.
7. Evaluate Your Sewer System: Involve a plumber to assess if there are any issues with the sewer and septic systems.
8. Conduct an Inspection of Heating and Cooling Systems: Have a professional inspect both heating and cooling systems to make sure they’re operating optimally and efficiently.
9. Scan for Mold: To detect signs of water damage or leaks in your home’s structure, look out for mold and mildew spots around your house that could indicate water leakage or flooding issues.
10. Examine For Asbestos: Before purchasing an older home, have it professionally assessed for any asbestos-containing materials, as exposure can be harmful to both you and your health.
Prior to purchasing any fixer-upper, it’s essential that you conduct a comprehensive investigation so you understand exactly what work needs to be done on it and the potential costs involved. Consulting an inspector may save costly repairs later. By understanding what kind of work needs to be completed on a fixer-upper, it will enable you to make an informed decision as to whether this project suits you or if it would be too big of an undertaking for you to undertake.
Myths About Fixer-Uppers
People often assume that fixer-uppers are money pits and impossible to return them back into shape, which may be true. However, with sufficient time and effort it’s entirely possible to transform one into an aesthetically pleasing home if done properly. Fixer-uppers can make great investments as you can purchase them at cheaper prices than comparable properties and then raise their value once restored. Performing research so as to understand what needs doing before beginning any major repair or remodeling projects is key.
Before buying a fixer-upper, it is vital that you gain an accurate assessment of its true condition. Hiring a professional inspector can give you a clear idea of the work required and if this is something that fits into your plan or not. Furthermore, having an accurate understanding of costs related to remodeling and repairs will ensure buying one does not become financially straining. With careful research and preparation you can transform a fixer-upper into a beautiful home while realizing a significant return on your investment.