Before deciding that your next home must be a fixer-upper, you should do some homework on what to expect when purchasing these types of homes. Many prospective homebuyers tend to have a romanticized version of the entire process and are quite shocked when confronted with the hard reality. Fixer Upper homes can often represent a good deal, but there are some points that a homebuyer should be aware of before making that offer.
MYTH #1: I can make a “killing” in the real estate market by buying a run0down home, for tens of thousands of dollars less than the average home, fixing it up, and then immediately selling it for full price, or more.
FACT #1: Most homeowners looking to sell their “fixer-upper” home understand that they will have to list their home at a price that reflects the cost involved in restoring the home to its original condition. The asking price of a fixer-upper is usually calculated so that the saving represented by the lower than average market price is roughly equal to the amount of money that a buyer could expect to spend on necessary renovations. Updating the “look” of a home, or upgrading to higher-end finishes, is not included in these calculations, and you should be careful not to spend so much money on renovations that you are unable to recoup your investment.
MYTH #2: If I’m buying a fixer-upper home, I don’t need to bother with the added cost and aggravation of a home inspection because I already know what I’m getting.
FACT #2: A home inspection should always be included in an Offer To Purchase and Sell agreement, and it is arguable even more important to include one when you are looking to buy a fixer-upper. Structural defects are normally not visible to the untrained eye, yet will cost much more to repair than the obvious cosmetic fix-ups. Most licensed home inspectors will not only detail the defects that they uncover, but can also give you a good idea of the costs involved in fixing them….to read more, order this entire FREE report by clicking HERE or give us a call directly at 703-297-4251.