Kelly Broaddus | eXp Realty | 888-446-5602 | Contact Kelly

Fixer Uppers, Are They Worth It?

Are Fixer Uppers Worth It?

This article has been updated on April 12th, 2019.

While it's true that a fixer-upper can buy you more house than you can afford, it can also lead to great headaches if it requires major renovations. How do you avoid this potential pitfall?

Get a Qualified Home Inspector

Before even looking for a fixer upper and even before talking to a realtor, it is important to find a home inspector. If buying an old home, the home inspector should be knowledgeable about houses xxx number of years old.

Go with the inspector and follow him around. You are going to get way more information than what is written down on the report.  He will evaluate any problems with the following:

  1. interior and appliances
  2. roofing- will it keep water out?
  3. heating and cooling system- age and type of furnace
  4. plumbing- leaks and pressure
  5. electrical wiring- is the house properly wired? does it have enough power?
  6. insulation and ventilation
  7. the structural foundation- is the basement dry? does it have cracks? will it stand up?
  8. exterior faults and more. 

DIY

The ideal do it yourself fixer upper needs cosmetic fix-ups than major appliance, ventilation, or structural repair. This means replacing carpets, repainting, replacing windows and doors, & installing light fixtures and ceiling fans. Get a good estimate on costs to avoid surprises.

 

FHA insured HUD 203(K)

Check if you qualify. This FHA program allows the borrower to purchase a fixer-upper that includes protection from extra costs should the parts being fixed goes overestimated costs

To buy a house with this type of loan, you have to come up with a down payment of at least 3.5% of the home's purchase price plus repair costs. This loan is not common so many lenders won't know how to process this type of loan. Go to a lender who has experience with this specialty loan product. 

 

Find a Qualified Contractor & Be Patient

Hire a licensed contractor. If you qualified for a 203(k) loan, this is a requirement. It may take a few weeks to several months before renovations on your new home is complete. HUD allows up to a maximum of 6 months for repairs to be completed.

 

WE’RE HERE TO HELP FLAGSTAFF BUYERS & SELLERS

Are you looking for fixer-uppers in Northern Arizona? Maybe you have a home that you want to sell. We can help. Contact Kelly Broaddus at eXp Realty (Direct) 888.446.5602 (Office) 928.606.6749 (E-fax) 928.255.4614

 

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