Factors to Consider Before Buying That Fixer-upper Home

The idea of buying a home that will need a fair bit of renovating can seem like a great investment opportunity, but some renovations come with high prices and may end up costing you more than you think. If you're trying to determine whether a fixer-upper is worth the cost, here are some important factors to consider.

What Will It Cost?        

If you're going into a home expecting a few renovations costs, a minor detail here or there may not add up to much. However, if you're not interested in spending the big bucks on making changes, you'll want to estimate an approximate amount of how much the renovations you don't want to live without will amount to. By including all the necessary labor and materials, you'll be able to determine if the price-point of your offer will be worth it. Keep in mind that if there are any serious issues with the house, it may not be worth your while to consider the purchase at all.

Will Renovations Increase the Value?        

If you're buying a home for its investment value, it's going to be particularly important to consider if the renovations required will increase its market value. While adding another bedroom or upgrading a bathroom may not add significantly to a home's overall price, certain more inexpensive improvements like painting, refinishing and new siding can add a lot to the look (and worth) of your home.

How Much Are You Willing to Take On?        

It's easy to think that you're prepared to do the dirty work when faced with a fixer-upper, but getting down to brass tacks may not be so simple when the time comes. Before taking on a home that needs a lot of renovation, consider how much you're willing to do so that you can determine if fixing it up will even be an economic boon after all the labor that may go into it. If you're not a DIY kind of person, you may want to avoid a house that has a long list of repairs.

A fixer-upper can be tempting for those who want to invest or save on a home purchase, but you'll want to carefully consider if it will be a good choice when it comes to selling time.

If you're currently perusing the market for a home, I can answer any questions about selling your home, buying a home, or other advice that you may have about real estate in Bucks County. Please feel free to call me at 215-519-1399 for more information.