Fixer Upper Tips
Some homebuyers might weigh options that others would normally pass by. One of the more common compromises is to consider a home that needs some work.
Fixer uppers often come with lower prices, less competition, and a lower-pressure sale on the whole. Still, they’re not without challenges.
Are you considering a fixer upper? Here are five things to think about.
1. Alternative Mortgage Program
If you want to finance the home purchase, and the renovations and repairs the property needs, you may need to consider an alternative mortgage rather than a conventional one. Your loan officer can help you choose the best option for your situation.
2. Appraisal and Inspection Issues
If the home is in disrepair, you might face challenges with your appraisal or inspection. This is especially true if you’re using an insured loan, as properties must meet strict requirements with these programs.
3. Backup Living Space
You might not want to end your lease, or sell your existing home just yet. If the property needs serious repairs or renovations, you’ll probably need to live off-site until they’re complete.
4. Contractor Expertise
If you're a contractor then you may be aware of most of the ins and outs of a fixer upper project. But, if you're not, then hiring a contractor to walk the property with you will be a wise choice, so you can gauge what repairs might be necessary, and how much they’ll likely cost.
5. Problems Below the Surface
Not all issues will be visible in a fixer upper. There may be major problems lurking below the surface that won’t crop up until later - like mould or termites, etc. Make sure you leave wiggle room in your budget to account for these potential surprises.
Fixer Uppers are just one of the many options you have when buying a home. Do you have thoughts or comments, or need more help with your homebuying journey? Reach out today.
