Is That Fixer-Upper A Realistic Choice For You?

Buying a fixer-upper is about more than just saving money. For many homeowners, it is a chance to rehab a home that they have fallen in love with. However, not all fixer-uppers are smart financial decisions and could quickly turn into money pits. If you want to buy a fixer=upper, here are some tips for assessing the home to determine if it is worth buying.  

Get a Home Inspection

Some homebuyers offer to waive a home inspection in hopes of saving money and winning a bid for a home. However, this could have dire consequences. Since you are considering a fixer-upper, the consequences could be even more serious.  

In your purchase agreement, ensure that there is a contingency which allows you to back out if the inspection fails and then schedule one. The home inspection will provide a solid assessment of issues with the home, including the roof and foundation.  

Ask Questions About the Home's Condition

Even with the home inspection report and a visual tour of the home, you need to still ask questions of the seller. There is some information you can obtain from the seller that is not included in the inspection report. Asking questions could also provide legal protection to you.  

If the seller falsely answers a question and it is discovered after the purchase is complete, you could potentially sue him or her for failing to be honest about the condition of the home. Your questions need to cover everything from the age of the plumbing to the electrical wiring.  

Assess Your DIY Skills

There are some repairs to the home that you should be able to tackle yourself to save on the expense of having a contractor do them. Funds that are saved on the remodeling can be applied to other repairs in the home and make your purchase seem more reasonable.  

When assessing your DIY skills, be realistic. If you have not done a particular task before, take the time to study how it is done and think about if this is really something you can do. You also have to factor in whether or not you have the time to get it done and within a reasonable amount of time.  

Ask your real estate agent to help you further explore whether or not buying a fixer-upper instead of a turn-key ready home is the best option for you. If so, your real estate agent can be key in getting the best possible deal for the home.