Buying a fixer-upper: is it right for you?



So, you’re thinking about buying that fixer-upper and turning that ’70s linoleum flooring and patchy roof into a Cinderella story? The following infographic and tips from Movoto will help you figure out if it’s the right move before diving in.

Should You Buy A Fixer-Upper Home? This Infographic Will Help You Decide

Set Your Budget

Crunch the numbers and determine how much money you are able and willing to spend when all is said and done, factoring in property taxes, realtor fees, and all repair costs.

Consider The Location

The amount you can increase the home’s value is limited by the neighborhood. Research the area’s public schools, nearby businesses, and community amenities to gauge your potential gains.

Inspect The Property

Get permission from the seller to do your own inspection of the property. The price of the home plus the cost of repairs should not be greater than the market value of other homes in the neighborhood.

Hire a professional! Find a home inspector who you can trust, and get a professional inspection of the home. Make sure it is someone who can provide references or point to positive reviews of their services.

Red Flags

  • A wet basement could mean foundation issues
  • Old wiring, which can be a fire hazard
  • Cracked or rotting windows
  • Water damage on ceiling may point to roof issues
  • Rust, leaks, or low pressure in plumbing

Investigate Loan Options

Conventional financing is not an option for most fixer-uppers, and having good credit is critical to making the long-term costs reasonable. Look into a FHA 203k loan and the Fannie Mae HomeStyle program, as well as other construction and renovation loans, to determine which is a best fit for your credit, budget, timeline, and renovation plans.

 

Republished with permission from Movoto.com

About Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

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