How Do You Know Which Fixer Upper Is Best To Buy?

If you’re just entering the real estate market and don’t have a lot of money saved, you may be tempted to consider purchasing a fixer upper just to get started. While the benefits of owning a home may be appealing, the outcome can be disastrous for your finances if you select the wrong fixer-upper.

The ideal property would require very minor fixing up such as removing outdated wallpaper or linoleum. However since there are many other buyers and investors looking for simple fixer-uppers, you’ll have a hard time locating one. But don’t give up hope, there are certain fixer-uppers other buyers will overlook, especially if they’re visibly unappealing from the street.

On the the opposite end of the spectrum, you have homes needing major remodeling including structural upgrades, adding or eliminating walls or room, and lots more. Unless you’re lucky enough to have a contractor in the family, you’re better off avoiding these money pits-particularly if they have health hazards (like mold) or are uninhabitable due to major damage to the floor or roof. Let’s go over the 3 main reasons to avoid this type of fixer-upper:

1) Getting A Mortgage May Be Tough – If the property has significant defects, a bank may require you to complete a certain number of repairs before it approves your loan. If you don’t have the funds to complete the repairs, the bank won’t approve the loan.

2) Beware Of The Money Pit – While the reason you may be considering a fixer-upper is due to financial constraints, ask yourself if you can afford to spend the additional money to repair the place. Even a simple cosmetic fixer requires some money to repair. Be sure to set aside additional funds to cover these renovations.

3) Major Remodeling Can Disrupt Your Life – If this is your first home, you may not want to deal with contractors, take time off work to oversee their activity, and deal with unexpected delays or extra costs. Your family relationships can also suffer from the resulting chaos while living in the house during construction.

The best choice among fixer-uppers would fall somewhere between the two extremes: a cosmetic fixer in need of reasonable repairs you can complete yourself or with the help of a handyman or contractor. Select a house needing minor improvements such as repainting, replacing wood flooring, or replacing a toilet. Avoid major remodeling such as new copper plumbing or a new foundation. Once you locate a home that fits your needs, be sure to:

1) Consult with your local city’s building department to determine if the changes you want to perform are acceptable. Most cities have restrictions and codes regarding wiring and plumbing remodels, setback distance, height limits, and other restrictions.

2) If you plan to add a second story or a room, be sure to consult with an architect, contractor, and engineer about the feasibility of the project and estimated costs.

3) If you’re buying a fixer-upper with another party, be sure to discuss how everyone will deal with the resulting stress and extra responsibilities coping with contractors and workers.

Looking to find the best deal on a starter home? Then contact these local San Clemente Realtors or Huntington Beach Realtors to help you find one.