Buying a home is a major life decision. Long before you are at the point of viewing various homes for sale in Nanaimo, there are things you should consider; should you buy a fixer-upper or a move-in ready home?
Buying a house that needs work may help you nab your ideal location but be sure the timeline and cost of renovations work for you. A fixer upper is a real estate requiring refurbishment, remodeling, reconstruction or redesign. The property may need either minor or extensive repairs.
Just about any time is a good time to buy a fixer-upper, especially if you acquire the property for a lot less than everything else around it. Fixer-uppers in need of updates or repairs usually sell for less per square foot than homes that are in good shape. This is because the buyer will have to invest time and money to restore the property. These types of homes have both advantages and disadvantages. Some are more obvious, others you may not have considered.
We recommend you evaluate the pros and cons of buying an upper fixer so you can decide which option is right for you.
Advantages of a Fixer-upper
1. More affordable
One of the main advantages of fixer-upper properties is that it can be a cheaper option. With the difficulties saving for a house deposit, plus other related costs, it is easy to see why many first-time buyers may consider this as the most affordable route.
2. The Ideal Fixer-Upper Gives you a wider choice of location.
Where you buy your property is just as important as the house itself. Those buying fixer-uppers might find their choice of location widened. You may find yourself able to afford to buy in an otherwise unaffordable area.
3. Can make it your own.
Doing up your home gives you the chance to customize it. From the kitchen to the bedrooms, you can fix up your home your own way. For many, this is an extremely enticing option.
4. Chance to add value.
Home renovation can add value to your home. This means you have the possibility to make a profit when you eventually come to sell to house, particularly if you cracked it up below the market value.
Disadvantages of a Fixer-upper
There are some inevitable downsides to buying a fixer-upper. Buying a home can be burdened with difficulty, and fixer-uppers are no exception. Let’s find out the cons of buying a fixer upper:
1. Renovation can be expensive.
Some buyers forget that, while they may have bought their home for a lower amount, renovation costs can stack up. From construction loans to builders’ fees, everything has its price. In some cases, this can be more expensive than buying the property at full price.
2. Some work can be unexpected.
It can be risky to buy a property that needs renovating. Sometimes, you find your new home needs more work doing than you originally thought.
It is not until you start a project that you can find things lurking underneath that you had not accounted for.
3. Can end up paying for two homes.
Depending on how serious the home improvements are, it may be impossible to live in the property while the work is going on. This means many new homeowners need to rent at the same time. For some, this is simply unaffordable.
4. It is time-consuming.
Renovating a property is time-consuming. Many projects overrun for a longer period, which can place a strain on both personal and work life.
What to look for in a Fixer-upper
How will you know when you have found the right home for you? Look for:
- Whether the renovations are cosmetic or structural (or both)
- Whether the location is great and suits your requirement
- Whether the surrounding homes are well-maintained
- How long the property has been on the market
- Whether you are likely to see a return on investment
- If you can afford the renovation
- If you have the time to renovate the property
- The building layout suits you. The layout should flow
How to Buy a Fixer Upper: Pick Projects That Pay
The ideal fixer-uppers are those that require mostly cosmetic improvements - drywall repairs, paint touchups, floor refinishing — which generally cost much less than what they return in market value. New lighting fixtures, doors, window shutters, and siding, as well as updated kitchens and bathrooms are also productive improvements. Projects involving structural changes usually cost as much as or more than they return in market value.
Sometimes, new homeowners underestimate what is involved with a Fixer-upper. It is essential to find a reliable surveyor to check over the property.