subject: Should Homebuyers and Investors Buy Fixer Uppers? [print this page] Should Homebuyers and Investors Buy Fixer Uppers?
People looking for a new home might opt to buy fixer uppers instead of new dwellings due to financial constraints. For those who are not very familiar with residential real estate, a fixer-upper home might cost more than a regular new home. However, there are certain ways to get a great deal and buyers should take note of each of these strategies.
Why Make a Purchase?
A fixer-upper house is a used dwelling that requires certain repairs to make it habitable. This type of residential property is ideal to those who have limited finances but have the necessary skills to renovate a residential structure. Of course, buyers can always hire professionals to work on the renovations, but a lot of savings can be realized if the buyer will not require the services of hired labor.
The main reason why some homebuyers prefer to buy fixer uppers instead of a brand new house is the affordability of these types of properties. Another reason is that some buyers are interested in remodeling the house according to their tastes and consider the process an exciting project.
Getting a Good Deal
Before signing any purchase contract, a buyer should make sure that the cost of repairs will not be too much for him to handle. If the purchase price plus the cost of repairs reach an amount that is higher than the purchase price of a brand new home, then it is a very poor deal indeed. Regular homebuyers will not be able to fully assess the renovation needs of a house that is why they would need the services of a professional and licensed home inspector.
It is also advisable for a buyer to negotiate with the seller that if the cost of repairs goes beyond his planned budget, he should be allowed to back out of the agreement without losing his deposit. Most sellers will allow such a provision; the trick is to get them to agree before the purchase contract is drawn and to have it in writing.
For people who plan to buy fixer uppers, they have a chance of getting a great deal if they plan ahead and conduct a thorough research of the property. Hiring a professional home inspector is also another way to ensure that they will be getting the best part of the agreement.
