Weighing Your Options for Buying a Fixer-Upper

Posted on: March 17, 2017 by Goodrich & Watson

If you’re in the market for purchasing a new home, you’re not alone. While you might have a long list of must-haves, you have to be realistic when weighing your wants versus what your budget will allow. If you’re working with a strict budget, it might be time to consider a fixer-upper. Granted, these old and sometimes dilapidated homes don’t always fare the best with new homeowners, but purchasing one can get you into the neighborhood you want at a price you can afford. Plus, you’ll invest in a home that can be your dream home while building equity right away. As you weigh your options, secure your home with a customized VA Home Insurance policy.

Consider the price.

A fixer-upper should be priced as such. While this might seem obvious, it’s important to note what exactly needs to be repaired and updated before considering it a good buy. Find out what similar homes in the neighborhood sell for and how tricked out they are (with amenities and materials). A realtor can help you figure that out, and that will tell you how much money you can invest in the home before you over-improve for the neighborhood. This is a mistake you want to avoid if you plan to sell in the future, explains House Logic.

Your remodel budget should be the equivalent of the market value of the homes in the neighborhood, because you won’t be able to sell it for more.

Evaluate what needs to be done.

From kitchen overhauls to minor cosmetic upgrades, consider what you’d like to get done. Some projects, such as landscaping and painting, can provide instant equity on a home. Others, like gutting the kitchen, require the help of professionals and money, which can skyrocket your budget and cause you to invest more money than you can get back from the home.

Consider instant equity.

As we mentioned above, instant equity projects are worth the renovation. These include hardwood floors, landscaping, new roof, insulation, and new siding. While these likely require the help of a professional (unless you have the expertise), these investments will add instant cash to your pocket should you choose to sell.

Evaluate your patience level.

If you’re skilled in DIY, or if you have no problem letting the pros handle the remodel, you have to consider your tolerance for disruption in your household. If you can’t manage the power tools, saw dust and constant company and noise in your home, a fixer-upper might not be for you.

About Goodrich & Watson

Whether you are in the process of buying a new home or have been in your home for many years, you can trust Goodrich & Watson with all of your home-insurance needs. Your home is your greatest asset. Protect it with insurance you can trust. For more information, contact us at (757) 591-2032.

Posted in: blog Homeowners Insurance

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