Fans of HGTV have probably seen more than your fair share of fixer-uppers. TV shows tend to make everything so simple especially tackling complicated problems. What’s the best way for you to decide if you can manage a fixer-upper?
Think about the following:
First, you need to determine the types of issues that are going to need to be updated. Second, be honest about your personal “handyman” skills. Properties with foundation, electrical, and/or plumbing issues, aren’t easy to fix. When it comes to simple cosmetic fixes, (paint, carpet, hardwood, sanding) there’s a good chance most buyers can do the work themselves.
The golden question you need to ask yourself is if all the work you will put in is going to make the property worth as much or more? Be honest with yourself. Sit down and run the numbers, and decide if you are willing and able to stick to a budget…knowing that most jobs usually run slightly over budget. Bottom line- if you’re handy and willing to put in the hours, your budget may be much smaller than what you would spend on a move-in-ready home.
Let’s be honest sometimes when investing in a fixer-upper, there will be work that needs to be done where you may not be able to be in the house. Are you currently located close to the property to keep on an eye on contractors? If not do you have enough funds to cover motels or other housing arrangements, Do you know reputable contractors who can do the work in a timely manner? And finally, with supply shortages hitting builders- can you secure the stuff you need to renovate?