Not everyone is looking for a perfect and maintained home. It sounds absurd maybe, although it is not as rare. Some people, when searching for a place to reside in, are particularly interested in those homes that are considered to be fixer-uppers that have suffered through time and gained damage as a result. Some of these homes have signs of mold on the ceiling or have damaged installations and issues with foundations.
Even if it may be so, people love good home repair projects to deal with, while others would not even paint the walls in the interior. One or two repairs are not enough though. When buying a house like this, it is important to weigh everything that comes at stake, especially if it is damaged on the outside. If you are one of those types of people who enjoy dealing with a fixer-upper house that is severely damaged, this would be the best possible advice on what you should know before investing your hard-earned money into it.
Is Purchasing the Estate Risky?
It is important to ask yourself, do you plan to live inside the damaged house you buy or just tear it down to the ground because of the land. The answer to that question should affect the necessity of the repairs and the nature surrounding the house.
Making a purchase that is risky should always have a plan at first. So, advice would be to make sure you know what you are planning to do with the exterior of the property before making a final commitment.
If you want to figure out, when purchasing a damaged house, how much you should pay, you should start with a simple calculation. It would be recommended to first add up all the costs you would need in order to renovate the property. The cost should be based on a thorough assessment of the overall house condition. Do not forget to be thoughtful with the estimate.
Secondly, you should subtract that with the possible market value of the home after it has been renovated on the outside. As an example, you could draw the examples from real estate prices of the neighborhood the house is in. Afterward, deduct at least 5 to 10 percent for things you need to do. For instance, will you be needing a roofing service, or some other professional to assist you with your repairs? All unforeseen problems should also be added in, as well as the mishaps that you will have to deal with. The result you get should be the offer of the estate. Also, it would be essential to include the inspection clause.
In the best possible scenario, it will assure you that the house is a good thing to invest and in the worst situation, it will help you to not make a deal. Inspectors will document only several serious problems which you could use in order to get the person selling the property to pay for repairs or to make the price go lower.
Although these houses might need some structural improvement, it is still advisable, according to some real estate agents to avoid such a step. The reason is, some major repairs are not visible at first glance which can offset the cost of renovation and rarely raise its value.
Prepare Yourself to Invest Some Time and Money
After weighing the cons and pros of should you make the purchase, it would be wise to prepare yourself to invest time and money into the house itself. Sometimes, the investment can be of high quality which is proven to be quite expensive, while on the other hand, you may end up with a good result which was cheap and easy to achieve.
Also, there is nothing worse than buying something which you are pushed into. Meaning, any good agent should not pressure for sale to happen and should provide you with all information about the exterior of the house so you know what you are getting yourself into.
For all those individuals that love to work on old houses, the idea of buying a house with severe exterior damage is irresistible. The mere thought of making a place that is a ruin into a glorious dwelling that the entire neighborhood will admire, and investing a certain amount of finances into its renovation is rewarding enough when the results of the effort are visible.
Even so, it would be wise before buying such property to learn all there is about the repairs and how much time and effort they will demand from you. As well, would it be actually worth it?