Buyers: Don't Buy a Money Pit Without a Plan!

Do You Have the Stomach OR the Wallet for a Fixer-Upper?

A past client reached out to me late this afternoon.  She was asking about a property that had been rebuilt in the flood zone area.  It has been on the market since winter and is now priced modestly at $50,000.  Her daughter is searching for rental or purchase options because she has a cat and would like to have a dog as well.  The house had been remodeled and featured some very new and modern touches.  The current owner has owned it for 9 years and has rented it.  Maybe not the right place for my buyer, but it got me thinking.

I have buyers coming in from out of state next week that are considering all different types of homes.  From fixer-uppers with character built in the early 1900s to newer modern ramblers or split levels in wooded areas, to newer construction cookie cutter homes.  Three different types of homes, three different tax and school districts, all in the same price range.

They have owned a home before and are capable of making some improvements and repairs themselves.  But here is where it gets sticky.  If you are moving to a new city/state where you have no support network, no family and no friends nearby, is it a wise idea to purchase a home that needs fixing?  After all, if you have family, friends, and co-workers, you can borrow tools, have help with babysitting the kids, have someone to help carry out the old stuff.  But when you are relocating to a new place, you lose that support.  

So here is where you have to think about your wallet.  IF you don't have thousands in the bank, nor do you have the manpower to do things yourself, you will end up paying more for someone else to get the work done for you.  Also if you have small children, you will not want to live in a construction zone for too long.  It takes longer to do projects yourself on the weekends and evenings when you have a full time job elsewhere.

Food for thought on a Sunday night.  Whether you are looking to spend less to make a home your own or a little more to have something that is ready to move right in, everyone has their own strengths and weaknesses.  It is important to think about what matters the most to you and what is best for your family.  Timing and convenience makes a difference to your bottom line.

Keep smiling!

Karen