First Home Facts

3 Steps To Take If You Are Buying A Fixer-Upper

If you are really handy with home improvements and repairs, you might be considering buying a fixer-upper home. This type of home is great for people that can do a lot of the work themselves; however, it is very important for you to really evaluate the condition of a fixer-upper before you sign the contract to buy it. Here are three vital things to know if you are considering buying a house that needs a lot of work.

Know the difference between facial and structural repairs

Fixer-uppers can come in many different types. Some may need minor repairs, while others may need complete overhauls. This is one of the most important things to examine as you look at fixer-uppers, especially if they are vacant. You will want to find out if the work is facial, meaning that the house just needs paint and other minor repairs, or if the work needed is structural. Structural work can include replacing the foundation, the systems in the home, and other major parts of the home.

You can hire a professional to help you find out

If you are not sure what to look for as you examine the house, it will be very important for you to hire a professional to help you. If you fail to do this and do not fully understand the work a house needs, you might end up in way over your head. In other words, the expenses you must pay may well exceed the amount you planned on spending to make this home livable and nice.

You could hire either a home inspector for this purpose, or you could choose a structural engineer. Both options are good ones, and both can help you fully understand what types of work the house will require if you purchase it.

There are loans for this purpose

The other important thing to understand is that there are special types of loans available for people who want to buy fixer-uppers and invest money in them. One example is called a 203(k) loan. This type of loan is designed to give a person money to buy the house for its sales price, but then there is additional money available for the person to use to make the home repairs. The total amount issued for the loan will usually be based on a percentage of what the home will be worth when all the renovations are made.

If you are interested in buying a house that needs work, contact a real estate agency today. An agent might be able to help you locate homes that fall into this category, and you will then be able to begin viewing these homes.