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If you are anything like me, HGTV shows can capture your attention for hours. Watching what the designers can do to transform a beat-up, dated property always makes me think “I can do that”. But, there are somethings that you really need to understand before purchasing property that needs a rehab. (Basically – it’s not always like the TV shows, even if we wish it were!)
- Generally the purchase price of a “fixer upper” is less per square foot, than a “move in ready” home. Making the opportunity for equity building sometimes higher with a home that needs some repairs – sweat equity, can have a big impact on home value.
- Know your budget, and stick to it. Yes, surprise repairs will happen! You need to build in a contingency plan, and be prepared to make adjustments to finishes & fixtures if needed, to offset the bigger – needed items.
- You don’t want to just “put lipstick on a pig”. Make sure you have inspections completed, and tackle the structural “big” repairs first – fix the basement leak, replace the windows, put a new roof / siding on – those are the items that will protect your investment long term – the new paint and cabinet hardware can wait, if needed.
- It will probably take longer than you think it should. Especially if you need to line up contractors to do some of the work for you.
- Be realistic with what you are willing & able to take on in a rehab project. Do you want to be moved in, and settled quickly? Then a fixer upper may not be for you.
Several people on the Jim & Bernie Team have lots of experience with personally working through “fixer uppers” – We would love to have a conversation with you before you decide on your next home purchase and help you weigh the pros and cons of purchasing a home that might need some work, vs a home that you can literally just bring your stuff into & start enjoying.
