Is Buying A Fixer-Upper In Calgary Worth It?
Blame it on Chip and Joanna, Jonathan and Drew, or any other HGTV dream team — fixer-uppers are getting their fair share of love on the market. SO how do you know what is right for you? Should you buy that fixer-upper? Or should you stick to buying a finished home or a new build?
Buying a fixer-upper is a good idea when you want to make the home your own. The beauty of buying a house that needs work: a fixer-upper might be a good idea. You get to turn the house into your dream home — and, usually, at a much lower price than if you were custom-building from scratch. You can also usually get it for a great deal. Many imperfections that turn people off—peeling paint, worn carpets, or dated fixtures—are easily correctable. Blemishes are tough to see past, and those homes often languish on the market since most home buyers, especially first-timers, demand a turnkey, move-in-ready home in pristine condition.
Fixer-uppers list for an average of 8 percent below market value. Some people also pick fixer-uppers to make some money. Investors will buy properties at a lower cost, do the renovations themselves and then sell the home when finished for a profit.
Some downsides of buying a fixer-upper
Is renovations are expensive and there are typically a lot of hidden costs. While you’ll pay less for a home in need of repairs, you’ll spend money over time, probably hundreds of dollars per month over and above your mortgage payment. If you want to test the strength of your relationship with your spouse, try buying a home and renovating it together. Whether you choose to go the DIY route or hire a contractor, renovating is stressful, messy, and disruptive. If you have a busy career or children, you may find renovating to be more trouble than it is worth. Also, be prepared to not have the renovation go according to plan. If you buy a fixer-upper, especially an older one, you’ll never be sure what is behind those walls until you start renovating. The possibilities for unwelcome surprises when renovating are almost infinite. If you don’t budget for these surprises you may find yourself going into debt to complete your renovations.
In the end, you have to make the call whether you can handle a full-fledged renovation or you OK just updating paint and flooring. Many years ago I used to do construction work from new build homes to renovations so I have some insight on what homes might be good for a fixer-upper and ones that might be best to pass on. If you have questions about potentially buying a fixer-upper and want to chat further, give me a shout!
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