The allure of purchasing a "handyman special" property, which requires some work to be livable, can be quite enticing. Commonly referred to as a "fixer-upper," this term is widely used even for the most dilapidated and damaged houses. In this article, we will delve into the advantages and disadvantages of buying a property that requires only a moderate amount of work. Read on to gain insights and make informed decisions when considering a handyman special in your neighborhood.
Pros
1. Attractive Price Point:
The primary allure of a handyman special lies in the potential cost savings. Sellers of such properties are typically willing to accept lower prices due to the necessary renovations. Depending on the estimated renovation costs, purchasing a handyman special can present a significant opportunity to acquire your dream home at an affordable price. Moreover, if you possess the time and skills to contribute your own "sweat equity," you may potentially build greater equity in the house once the required work is completed.
2. Reduced Competition:
Properties in need of renovation generally have fewer interested buyers. Many people are reluctant to undertake repairs, in addition to the expenses associated with moving and purchasing a home. As a result, you are likely to face less competition, affording you greater negotiation power and the ability to secure the property at a lower overall price.
3. Personalized Touch:
When a house requires renovations in areas such as the kitchen or bathroom, it provides the opportunity to tailor the design according to your preferences. Not only can you save money when buying a home, but you also have the freedom to select tiles, fixtures, and other elements. It is an ideal time to paint or replace carpets before any furniture is moved in. Many individuals purchase fixer-upper properties for this reason alone – the chance to truly make the house their own.
4. Access to Desirable Neighborhoods:
If you have longed to live in a specific neighborhood that falls slightly outside your current budget, handyman specials in the area can offer a solution. By purchasing a property in need of renovations, you can acquire a home in your desired neighborhood at a significantly lower price compared to a move-in ready house.
Cons
1. Higher-than-Expected Costs:
It is essential to anticipate spending more than initially planned when renovating a handyman special. It is wise to allocate at least a 20% buffer in your renovation budget. Unexpected expenses often arise, and additional repairs or desired improvements may be identified along the way. By factoring in these unanticipated costs, you can avoid being caught off guard or forced to reside in an incomplete house.
2. Potential Challenges and Frustrations:
Contrary to what popular home improvement shows on HGTV may depict, fixing up a home is rarely as seamless as portrayed. While Jim and Susan might transform a dilapidated property into their dream home in half an hour on television, the reality is far more complex. You may encounter logistical obstacles, challenges with obtaining construction permits, delivery issues, and complications with contractors. Fixing up a home can entail a fair share of headaches.
Despite these challenges, adequate preparation and awareness of the potential pitfalls can save you time, money, and frustration. Consider whether this project aligns with your goals and preferences. Weigh the options carefully before making a decision.
Buying a handyman special can be a rewarding endeavor if approached with realistic expectations. Carefully assess the pros and cons, and consider your financial resources, skills, and tolerance for the renovation process. With proper planning and a clear vision, a handyman special can transform into your ideal home.
At Bright Idea House Buyers we specialize in purchasing "handyman specials." So if you find yourself with one of these to sell in a Southern California city such as Los Angeles, Anaheim, or Long Beach, we would be happy to provide you with an offer. Or if you have more questions about what you may be getting into if you are buying one yourself, we would be happy to offer you whatever tips we can from our years of experience.
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