Everything You Need to Know About Buying a Fixer-Upper Home

When it comes to homes, looks can be deceiving. Sometimes it's just a little work that’s needed and other times it’s a complete overhaul. But if the bones are good, a house can be completely transformed into the home of your dreams. So, how can you figure out what it takes to be able to handle a fixer-upper?

Do Your Research

One great place to start is by asking for a home inspection. If granted by the current owner or seller, this will allow you to have a much clearer understanding of what types of renovations you are looking at. Depending on the condition and what is required to make the house livable, you may be looking at a task list of structural and/or cosmetic changes. You may also want to enlist the expertise of contractors to help you figure out price estimates of what each of the items in your wish list might cost.

Know What's in your Wheelhouse

It's important to ask yourself what your strengths and weaknesses are when it comes to home projects. Will you be able to complete some of the easier renovations yourself? Or will you have to contract out every project? Either way, it is important to have a strong picture of what you can or cannot accomplish so that you can compare it to what you are able to afford.

Financing is Key

Fixer-uppers can be great because they can often be sold at a lower price than some newer more updated homes on the market. However, they can also become a financial strain if you do not plan out repairs properly or obtain the correct financing for the repairs you are looking to complete. It is important to discuss what renovations you are looking to accomplish on a property so that your Loan Originator can find the correct financing for your specific situation. They will help you by assessing your current financial standings, to see what you can afford out of pocket versus with a loan.

Handling a Fixer-Upper

The best thing about fixer uppers is that they have the potential to become the home of your dreams. To ensure that you have all that you need to create your perfect home, contact a Loan Originator at Homestead to discuss renovation loan options today.