In your search for a new home, you may have come across a fixer upper or foreclosure that caught your eye. The low price tag is probably what stood out, but of course with that price tag come a number of other factors that you don’t have to consider when you’re buying a non-foreclosure/fixer upper. How much fixing up does the house need? Is it worth the investment? The answer to this question will be the crux of your decision whether or not to buy. Keep on reading to learn more about buying a fixer upper or foreclosure.
Buying a Home: Buying a Fixer Upper or Foreclosure
Benefits of Buying a Fixer Upper
The low prices for these properties definitely can’t be beat.
One of the most widely held tenets of real estate is to buy the cheapest house in the best neighborhood you can afford. A fixer upper/foreclosure definitely fits the bill in this situation. You could get into a neighborhood that you otherwise would be priced out of.
Potential for ROI
The right properties have a great potential for ROI, especially if you buy in a good/upcoming neighborhood.
Questions You Should Answer Before You Buy a Fixer Upper
Are the repairs cosmetic or structural?
This is a very important factor. Cosmetic repairs are easier and less expensive to fix, and may be worth the investment. Structural repairs such as a damaged foundation are much more difficult and expensive to fix, so they might not be worth the investment.
How much work can I do myself?
It’s important to be honest with yourself here. If you’re handy and have the time to do them, then you can save a lot on repairs. If you’re not, then hiring a contractor will get the job done faster and is probably the best option, though it will cost more.
Can I handle the repair process?
Regardless of whether or not you’re doing the work, the repairs are going to take awhile. Are you going to be ok with living in a house that’s being worked on for an extended period of time? It can be a hassle, and you wouldn’t have to deal with this in another home. But in the long run, it could pay off.
Is it worth the investment?
This is the deciding factor, and is not a simple question to answer. Generally speaking, if the house is in an up and coming/good neighborhood, and the repairs don’t cost more than they add to the resale price, a fixer upper could be well-worth the investment.
Ask Us Your Questions
Do you have questions about buying a new home in Maryland? Grays Home Solutions has answers! Contact us today at 240-347-3141 to get your questions answered!