Buying Fixer-Uppers: Something for you?
A lot of people like the idea of buying a house that they can fix up, whether to live in it or to sell it. There are a lot of shows on television these days where people buy and fix homes so that they can flip them. While this can be a very profitable idea for some people buying a fixer-upper is not for everybody.
Whether or not buying fixer-uppers is something for you is going to depend on a lot of factors. The biggest of which is whether or not you have the skills that are required to do so. It is not absolutely necessary for you to have the actual construction skills to do the work yourself but you do have to be able to determine what kind of work needs to be done. Of course it would be beneficial if you could do the work yourself. The big thing is that you need to be able to determine how much it is going to cost to fix the home.
The first thing that you need to do if you are buying a fixer-upper is determine what kind of work needs to be done. You have to know whether it is simply cosmetic work that is required or if you are going to have to get in to the structural work as well. This is something that you are going to have to be able to determine before you buy the house. If you have to do major structural work the cost of fixing up the house is going to soar, and the process of getting multiple quotes from contractors might take a very long time (more info on that is here, check it out, it’s a solid read!).
It is also important that you make sure that you do the math to determine whether or not it is worth doing. You need to figure out how much it is going to cost for you to fix up the house and determine what the value of the house will be when you are done. If the value of the house doesn’t increase by more than the amount that you spent to fix up the house it is not a good idea to get involved. This can be a tricky process since you will have to be able to figure out what it will cost to fix the house and have a good idea of what the value will be after it is done.
It is also important that you look at the value of the other houses in the neighborhood where you are buying. If you fix up a house in a poor neighborhood the value will increase by far less than it will if you fix it up in a good neighborhood. The maxim is usually that it is better to own the worst house in a good area than the best house in a bad area. Putting a lot of money into fixing a house in a bad part of town is not usually money well spent.