Pros and Cons of Buying A Fixer Upper
Many people love the idea of buying a home and customizing it to their taste. HGTV has made buying fixer-upper homes increasingly popular. Along with television shows, social media really blew up the idea of doing your own renovations and home projects. Social channels like Pinterest is a great idea generator for many "Do It Yourself" people. Trying to come up with a concept, look it up and you will find endless tools to show you how to "SAVE" money and do it yourself. With YouTube, you can watch videos to see exactly how to complete a project from start to finish. We can go into many reasons why this can be extremely successful but there are just as many reasons why it can become extremely costly and disastrous. When deciding if buying a fixer-upper home is right for you, calling one of our experienced Colorado Springs real estate agents is your first step in the home buying process. If you are in the market to buy a fixer-upper home in Colorado Springs, read our list of pros and cons so you are fully prepared for the type of home you are buying.
There are many pros to buying a fixer-upper home in Colorado Springs. A mature home tends to have character and charm that a lot of buyers are looking for. With a fixer-upper, you can take on the projects yourself to save money or hire contractors to do the work. If choosing to do the projects yourself, you can get a great deal on the home price and spread out the projects over time to make it more affordable. Some buyers would prefer to hire a contractor to come in and knock out all the projects at one time, so it is just the way they want it from the moment they move in. Here are a few reasons why buying a fixer-upper may be the right option for you.
- Affordability- Many times when buying a fixer-upper, the list price is lower than a move in ready home. Plus, often times there isn't as many offers on the home, giving the buyer an advantage. You can save money off the top and redirect the savings to customizing your new home.
- Customization- The excitement of buying a fixer-upper is being able to create a space that has your personal touch on it. You can hire contractors to get the job done, but you still have creative control on all the details of the project. If you do the projects yourself, this can be extremely rewarding for the buyer that likes to take pride in their hard work. Doing the projects yourself allows you to be done all at once or spread it out over time to reduce upfront costs.
- Don't Settle- You may look a variety of homes that have certain features you like but not one home has all your required needs. Depending on the type of fixer-upper home, you can create your dream home. Take your want list and create a plan to retrofit the home to have all of it built in. This will help you to not settle on a home that you will be unhappy with in the long run.
- Home Equity- With fixer-upper homes, you get instant equity in the right remodels. This will help the overall value of your home in many ways. You can choose where you put your money in the home. This helps because certain areas of the home have a higher return value than other areas. This allows you to be purposeful with your dollars and get the biggest return.
- Location- Sometimes you may not be able to afford a newer home in a nice neighborhood. Buying a fixer-upper allows you to have the dream neighborhood for the price you can afford. You can always remodel and make a home's value go up, but you can't always create the ideal location. Always look at the location of a home because no matter how nice you make a home, it will never be worth more than the neighborhood it sits in.
- Budget- Plan to go over budget! There will be items during the renovation process that will cause you to exceed your budget. This could be a deal breaker for buyers on a tight budget, to begin with.
- Hidden Obstacles- With a mature home, you can only see certain aspects of the home during an inspection. You most likely will run across unpredicted projects that you didn't budget for. If you get into a wall and notice mold, this could become costly quick. Some may pull up flooring and realize all the subfloors need to be replaced. Older homes may have electrical or plumbing that is not up to current building codes. Once inside, it will need to be brought up to code which then could cause a delay in the overall project and money. All of these projects are just examples of how one small job can blow a budget quick. This may be more than a buyer can chew.
- Waiting Period- If you hire a contractor to do all the work on the renovations, most likely you will have to wait to move into the home. This can be frustrating for many people especially if they are moving out of one home and into another. Small delays could cause major moving complications. If you decide to do the renovations over time while living in the home, this really will be a long waiting period to see the final vision come to light. Living in a home that is under constant construction can be very difficult for any family.
- Stress- With all major projects there is a level of stress that goes along with it. Whether the stress is related to deadlines, budgets or not agreeing on the direction of the projects. Take time to evaluate if you are ready to take on this much stress. If you already have a lot going on in your life, this may not be the right time to take on a project of this caliber.
- Inspections- A fixer-upper home may not pass certain inspections which could cause issues with your lender. Make sure you are prepared to handle these situations as they arise or be able to walk away from a home that isn't able to be lender approved.