Is a Fixer-Upper Right for You?

Whether or not to buy a fixer-upper house may be one of the oldest questions in the book. There are so many pros and cons to doing that it can be difficult to determine whether it is the right choice or only a dream that could turn into a nightmare. Most people avoid buying a house that needs a lot of work, but there are times when doing that could be the best decision you have ever made. If you do your research carefully you'll be less likely to end up with a house you can't fix at all, or one that costs you much more than you expected it to. That's worth taking a look at. Here are some specifics to consider.

What is the Asking Price?

The asking price of any house that needs work should be low enough to accommodate that work. In other words, don't pay too much for a house that you'll have to put a lot of money into. It's much better to choose a home that needs less work if you're going to pay a lot. Most buyers will hunt for bargains if they want a fixer-upper, and they will also try to negotiate the price down even lower. Keep in mind that paying cash will be the best choice for a house that needs work, too, because getting financing on a fixer-upper may not even be possible. Instead, it is important to have the money to buy the home and do the work on it.

How Much Work Can You Do Yourself?

For buyers who are handy and know how to do a lot of things, buying a fixer upper could be the right choice. That way they don't spend a lot of money in contractors, and they can move forward with a home project that's right for them. There may still be things that can't be done easily, but even being able to do some of the work yourself can mean big savings. Depending on where in Canada you're located, the options to choose from when it comes to contractors may be good or bad, as well. Some smaller and more rural areas don't have the options of the larger cities and towns.

What Did the Inspection Report Say?

Having the house inspected can cost some money, but it's generally a good idea. Any buyer will want to make sure the house is structurally sound, or ask for the price to be adjusted if it isn't. In some cases, buyers may walk away after an inspection because the project is just going to get too big. Without an inspection that might not have been noticed, and that could have become a serious issue that cost much more than expected. Reading the inspection report carefully and making note of all the actual problems with the house matters, and should be done with any fixer-upper.

Should You Get Bids Before You Buy?

Another way to determine how much fixing a home is going to cost is to get bids from contractors before committing to the purchase. If the seller really wants to sell the house, they'll generally work with you to make sure you get answers to your questions about buying it. If you bring a couple of contractors through and get bids, there will be a much better idea of the cost of repair. That can help any buyer decide if they want to proceed with the purchase, and if the asking price is a fair one. In some cases, walking away from the project may be necessary, but in other cases it will be a great way to see what the cost will be and potentially get the sales price lowered.

What About Unforeseen Issues?

No matter how well the house is inspected and how well a contractor looks it over, there are always chances that something will be missed. Planning for these kinds of concerns is important, and buyers who choose fixer-upper properties should have some cash in reserve. That way they can adjust their budget a little based on what else the house might need. There isn't always time to find every little issue, and small concerns that pop up are to be expected anytime a buyer chooses a fixer-upper property instead of one that's more move-in ready.

Where Is the House Located?

The neighbourhood matters, as location is a big part of real estate. If a buyer can find a good community like Kings Heights and a property needing work, that can mean a great deal in the long run. Once the property is fixed up, the buyer will be in a great position and location, whether they want to continue living there or sell the house and move on to something else.