While there are many savings and other advantages to buying a fixer-upper, they can also turn out to be cost prohibitive. Here are some considerations you should take into account before you make the investment in this type of home.
Check local zoning regulations
Cities and towns have zoning requirements and restrictions. Find out what you can and cannot do with the home you want to buy.
Have the home inspected
An essential step for all new home loans, this will give you an assessment of what shape the home is in and what needs to be done.
Estimate repair costs before making an offer
Show a contractor the inspection report and the house, then ask for a written estimate for the repairs. If you’re planning to do some of the work yourself, don’t forget the cost of supplies and materials.
Try to get a price break
A home that needs a lot of work could get you as much as a 20-40% discount on the purchase price. Take into account the time, money and hassle of doing the renovation when you make an offer.
Choose the right type of loan
Latitude Financial offers different types of remodeling construction loans intended for different types of projects – from major structural repairs to cosmetic remodeling or upgrades. Talk to a home loan expert to make sure you are getting the right loan for your needs.
Determine if you can do any of the work yourself
Having the skills (and the time and patience) to do some of the work for yourself can save you a lot of money, plus give you a great sense of pride and accomplishment.
