Generally when a home is listed as fixer-upper, the seller wants to sell the property without the added worry or cost of doing the repair themselves. However, depending on the type of mortgage you get, the home may or may not pass the lender's inspection and the sale is contingent on the seller's agreeing to do the need repairs before the lender will approve the loan. If the seller really want to sell the property, they will be willing to do some if the needed repairs. Fixer-uppers in need of major repairs may require a different type of loans.
A fixer-upper can be slightly shabby, or it can be a complete bomb. The best advice is to be honest with your agent about what conditions you feel you can handle the conditions you want to avoid. For example, some homes in need of new flooding, paint, and perhaps a few knobs on the cabinets may be considered fix-uppers. If you are looking for a good deal, you will be probably happy to consider a home that need only a small face-lift.
However, a tumbledown shack and a home that has suffered a small fire or flood damage can be qualified as fix-uppers. Tell your agent your view of a fixer-upper and ask to be shown only those houses that fit into your ideals. However remember that many times an agent will make a call to show you a home according to what is included in the MLS, and sometimes the defects of a home may be downplayed there.
Advantage of buying a fix-uppers
For those who enjoy rolling up their sleeves and love the smell of sawdust and fresh paint, a fixer-upper brings more than just financial benefits - it brings a sense of pride in having been part of the building process. There can be a number of advantage to buying a home that needs a little TLC (tender loving care). For many first-time buyers, a fix-upper is the best option, and sometimes it is the only option. Shopping for a fixer-upper home can be compared to shopping for a new washing machine at a store that sells slightly dented appliances - the lower cost is one of the main attractions. Buying a fixer-upper is often a way for you to get into a better neighbour that you couldn't otherwise afford. In some case, fix-uppers have been on market a long time, and this alsi helps bring down the price. But you should ask yourself if the other buyers know something that you don't. perhaps the repairs the home needs are too costly to make.
Another advantage of buying a fix-uppers is that you may be able to buy more square footage for your money. If you are in the market for a large home, but can afford only smaller hone prices, consider looking at homes in need of a face-lift. Because money may be short, be prepared to do the downstairs now and wait another year to get new carpet for the upstairs.
Another undeniable reason for choosing a home in need of repairs is that you can make some of the decorating decisions that you may not be able to make in a house that is move-in ready. You no longer have to hope to find a home with wllpaper in the dining room that will match your grandmother's china; you can choose the wallpaper yourself. From the color of the paint to the choice of flooring, you don't have to live with someone else decoating taste for a few years. Buying a fixer-upper is one way to make sure your personality is apparent in your home.
What you need to consider before buying a fixer-upper? Here are some tips before you buy.
1. Location: A run down house in an upscale or even an attractive neighborhood cab be a good investment.
2. Inspection: Inspection are important in the purchase of every home, but never more so that in the purchase of a fixer-upper.
3. Get detailed estimates on repairs: Don't rely on just assumption of repair cost. Hire a professional to help calculate the true cost of turning your fixer-upper into your dream home.
4. Zoning restriction: Look into local zoning restriction whom you find a fix-upper home that interests to you. Be sure you can renovate the home in the way you want.
5. The length of the time that will be needed to do repair.
If you are planning on doing the repairs, how much time will you really be able to devote to the project?
6. Evaluate the floor plan:
A home with good basic layout, even one that is hideously decorated, can be good fix-upoper. On the flip side, a house that seems maze of mismatched rooms may have a defective floor plan that no amount of paint and small repairs will remedy.
7. Can you handle the hassles of renovating the houses?
It's somewhat jokingly tossed out that renovating is one of the leading cause of divorce.
