3 Questions To Ask Before Buying A Fixer Upper
Buying a fixer upper is one way to save on a home. However, a fixer upper comes with its own set of problems that you should factor into your decision. If you are thinking of buying a fixer upper, here are some questions to ask yourself first.
Is the Home in a Historically Protected Neighborhood?
Homes that are in a historically protected neighborhood have special requirements that could make the process of renovating them costlier and lengthier than a non-protected home. You could be required to obtain special permits to make changes to your home. You could even run into restrictions that dictate what changes you can and cannot make with your home.
There is a perk to buying a home in a historically protected neighborhood, though. The value of your home will likely increase over time. Smart renovation decisions can also help to increase your home's worth.
Does the Electrical Wiring Need Upgrading?
Chances are, your fixer upper might need some upgrading of its electrical wiring. The older the home is, the more likely it is that the wiring is not up to current electrical codes. If it is not, you will have to upgrade the wiring to avoid a fire hazard.
Depending on the depth of the repairs, you could end up spending thousands on upgrades. However, the upgrades help to make your home safer and help you avoid problems with selling the home in the future, if necessary.
Can You Get a Discount?
If the fixer upper has been sitting on the market for awhile or there are a lot of repairs that need to be made, you might be able to negotiate a discount on the sale price. There are several points you can make to attempt to convince the seller to lower the price. For instance, you can talk to the seller about how much you love the home, but explain that it will take considerable funds to bring it up to date.
To bolster your claims about the repairs, consider having a contractor walk the home with you and detail what expenses will be necessary in bringing the home up to code and within your comfortability level.
There are other considerations to make when buying a fixer upper. Contact a company like Keller Williams Realty River Cities to talk to a real estate agent about your concerns and to learn more about getting a good deal on a home that needs a little love and care.