Would you consider yourself a handy person when it comes to home repairs? If so, and if you are ready to buy a house, are you considering buying a fixer-upper? This can be a great option for someone that is good with home repairs but buying a fixer-upper is not always an easy task. In fact, if you plan to do this, here are some of the challenges you might face during the process.
Finding a Fixer-Upper that Does Not Need Structural Work
When you think of a fixer-upper, what are you picturing? Some people picture fixer-uppers as homes that are very dilapidated and falling apart, while others picture them as homes that just need some cosmetic work. While you might find both types as you search for a home to buy, a challenge you might face is finding one that does not need any type of structural work. If you end up with a fixer-upper that is not structurally sound, you will end up needing to put a lot more money and work into the house, because the structure is absolutely vital to the quality of a home.
Determining the Extent of the Work the House Needs
The second challenge you could face when buying a fixer-upper is determining how much work the house really needs when you put in your offer. You should inspect the home yourself and hire an outside inspector too, but it can still be hard to determine exactly how much money it will cost to renovate the entire home. If you do not estimate properly, you could end up spending way more money than you had initially planned to or hoped to.
Financing the House and Project
The other challenge you could face is getting financing for the house. Banks are not always willing to loan money on fixer-uppers, simply because they are risky deals, so you might not be able to find a loan to make the purchase. The other problem can be finding a way to finance the actual work the house needs. If your bank will not loan extra money on the deal, would you have a way to finance all the work the house needs, or would you be stuck living in the house just as it sits?
Knowing these challenges may help you better prepare for the process. If you would like help finding the right fixer-upper to purchase and remodel, talk to a real estate agent. For more information, reach out to a company like Cannon Real Estate today.Share