As home renovation programming becomes increasingly popular, more home-buyers are expressing interest in purchasing fixer-uppers as opposed to brand-new homes. Buying a fixer-upper does have its perks.Above all, you’ll be able to customize the house in a way that suits your every whim, enabling you to ultimately have the home you’ve always dreamed of, without the astronomical price tag. Still, there are several risks to be aware of, some of which may be enough to deter you from buying a fixer-upper altogether. To help you in deciding whether you should purchase a new home, or flip one yourself, consider the information below provided by Rex Homes.
Deciding Whether a Fixer-Upper is Worth It
Flipping a home seems to be an excellent option for boosting a home’s equity, especially since you will be purchasing the house at a relatively low price, given its age. The renovations and additional assets you place in the home will inevitably increase its value, giving you a notable profit margin, should you decide to sell it after renovation. This is all especially true if you choose to flip the home yourself, as you will save an immense amount of money by avoiding the hefty cost of labor. However, these benefits are only realized if you budget appropriately and pay attention to each detail in expenditures.
Home renovations are infamous for financially spinning out of control, especially when the home in question is relatively old. As you work your way through the project, you may begin to discover out-of-date plumbing and electrical wiring, rotted wood, and other expensive wear and tear. This has caused many a renovation project to be canceled partway through. If you’re considering flipping a home, conduct all possible research into the structure before committing to the purchase to determine whether the project will be worth it or not.
Do You Have the Time?
It’s difficult to tell on home renovation shows, but this work can take a considerable length of time. If you work a full-time (or even part-time!) job, you may only be able to allocate weekends to your project. This will extend the expected renovation time exponentially, and you may grow tired of the work before ever making a dent in the project. If you move into the home before the renovation is complete, you risk being unable to use certain rooms in the house for months at a time.
There are many things to consider when deciding whether a fixer-upper is right for you. You may not see the fruits of your labor until several months after the purchase, and even then, there is no guarantee that you will be able to remain within the confines of your original budget. With the help of an experienced mortgage professional, you’ll have an easier time of deciding whether you should buy new or opt for a renovation project. If you’re on the fence about this decision, contact a mortgage professional today to consider all the core details of taking on a fixer-upper as your new home.