What Will It Cost?
If you’re going into a home expecting a few renovation costs, a minor detail here or there may not add up to much. However, if you’re not interested in spending the big bucks on making changes, you’ll want to estimate the cost of renovations you can’t live without. By including all the necessary labor and materials, you’ll be able to determine if the price-point of your offer will be worth it. If there are any serious issues with the house, it may not be worth your time to consider the purchase at all.
Will Renovations Increase The Value?
If you’re buying a home for its investment value, it’s particularly important to consider if the renovations required will actually increase its market value. Adding another bedroom or upgrading a bathroom may not add significantly to a home’s overall price. But certain more inexpensive improvements, like painting and new siding, can actually add a lot to the look (and worth) of your home.
How Much Are You Willing To Take On?
It’s easy to think that you’re prepared to do the dirty work when faced with a fixer-upper. But getting down to brass tacks may not be so simple when the time comes. Before taking on a home that needs lots of work, consider how much you’re willing to do. This will help you determine if fixing it up will even be an economic boon after all the labor that may go into it. If you’re not a DIY kind of person, you may want to avoid a house that has a long list of repairs.
A fixer-upper can be tempting for those who want to invest or save on a home purchase. Be sure to carefully consider if it will be a good choice when it’s time to sell. Contact us for more information.
