Fixer Upper Vs. Move-In Ready

Think you can save a ton of money by buying a Fixer-Upper? Look a little closer to understand all of the costs associated with buying a fixer upper.

The Advantages:

• Price: Cheaper and may have more room for negotiation.
• Location: Established neighborhoods tend be older with more wear and tear.
• Personality: Put your stamp on a house by adding finishes that speak to you.

What to Watch Out For:

• Time: Large home repairs can take as much as 2x the quoted amount of time.
• Structural Problems: Cracks in foundation, leaning walls, water damage.
• Wiring, Plumbing, Roof: Have these items been addressed in the last 30 years?
• Animals: Check for mice, roach, & termite droppings or any signs of infestation.

Is It Worth It?

Get a professional inspection, then have a licensed (and trusted) contractor look through the house with the inspecter's report in hand and provide a realistic bid. Then increase that bid price by 10-30% as no project is ever completed on budget.

Final Equation:

90% Of Expected Market Value > Purchase Price + 120% Of Bid For Repairs