Would it be a better option to buy a new home, or to buy a fixer-upper? When choosing your next home, it is one of the most important issues to consider. These tips will help you to make the best decision when weighing both options:
- Assess how much time and effort you have. How much you have of each is crucial to consider when determining whether or not to buy a fixer-upper. The first step is to determine how much of each would be needed to fix a fixer-upper. Then you should calculate if you have enough energy and time to get the job done. If you have zilch energy at the end of the day, or there never seems to be enough hours in the day—then you should probably consider other housing options.
- Consider your long-term housing plans. How long do you want to live in your next house? Keep in mind that repairing a house can be quite difficult, and can take a while to complete. Still, buying a fixer-upper can be a wise option if you plan to live in an area for several years or even decades. However, if you do not want to live in your next abode for that long, then you should consider other housing choices.
- Get several complete appraisals. Remember that good things come in three’s. Get at least three appraisals, and then calculate the average of all of them. If you can get more appraisals, then go for it. Also, make sure that the appraisal includes various types of inspections, such as for roofing and soil.
- Crunch the numbers. This is a crucial step to take before deciding whether or not you should purchase a fixer-upper. The best person to conduct an appraisal is a professional. That person will have the skills, experience, and tools needed to conduct the appraisal effectively. If you do not have an appraisal conducted, then you basically do not have the information you need to make the best decision possible. However, after an appraisal is completed it will be easier to choose or not choose a certain fixer-upper.
- Choose a house that needs fewer repairs. Not all “fixer-uppers’ will need major repairs. So you should consider selecting one that requires a minimum amount of fixing-upping. That could include repairs such as interior or exterior paint, basic plumbing, and carpeting. Should you still consider buying a fixer-upper that needs significant repairs? You should if the house’s price is low enough to make it worthwhile.
- Do your homework about the housing trend in the area. Usually the market values in a certain area are increasing or decreasing. So it is crucial to determine if the value of houses in the area where a fixer-upper is located, would generally go up or down after buying the house. Why is this an important issue? Repairing a fixer-upper can be quite pricey, so buying one in an area with a slumping housing market could become a double-whammy. That is not a good thing when making a long-term investment.