You’ve found a great house in the ideal location. But it needs some major renovation. So, you are now asking yourself some questions about whether or not you should take the plunge and purchase this fixer upper or pass on it and wait for something that is in more move-in ready condition.
On the plus side, purchasing a property “as is” can oftentimes mean that you can snag a home at a below market price – and, after investing some time and money into it, you can end up with an updated property that is worth a great deal more than what you paid for it.
Yet, on the other side of the coin, if you aren’t properly prepared for what you could be facing, buying a home that needs work could be faced with peril. Often, the repairs that appear to be required on the surface can be just the tip of the iceberg – which can lead to going way over budget, or going without some of the necessary renovations.
So, how should you best move forward with deciding whether or not that fixer upper is for you?
First, you should start with doing the math. This equation needs to include the costs that it will take to renovate the home based on a complete – and realistic – assessment of the property. Remember to include the cost of materials and labor, including your own.
Then, you should add an additional 5 to 10 percent to that amount. This is for any unexpected items that notoriously will occur. Having a professional inspector evaluate the home can be extremely helpful. Although this may cost several hundred dollars, it can be well worth it, as the inspection will provide you with a full report of the home’s structure and systems.
You should also evaluate just how much you really want to take on. For some people, renovating a home is looked at as a challenge, or even a fun “project.” Others, however, may not view it in that exact same light.
Whether you’re seeking a fixer-upper challenge or a home that is ready to move right into, we can help you find it in the Bakersfield area, so Contact Us. We will also be happy to provide you with a free, no obligation assessment of your current home’s value.