Considerations for Buying a Fixer-Upper vs. Move-In Ready
One of the first things you need to decide as a homebuyer is whether you’d prefer to purchase a fixer-upper or a move-in-ready property. There are pros and cons to either option, and it’s important to consider them all carefully before you come to a final decision.
Cost
The main appeal of a fixer-upper is the lower price. On average, these properties cost eight percent less than market value. In addition to reducing the purchase price, this means you’ll pay less in property taxes. Plus, when it finally comes time to sell, you may be able to make a big profit. Be aware, though, that it could be more expensive and complicated to renovate a property than you initially anticipate, even if you receive a home inspection before you buy.
The Chance to Redesign Your Home
Another benefit of a fixer-upper is that you’ll have the chance to make the property your own. Nonetheless, there will still be some limitations as to how much you can do with the property. For instance, you’ll need to pay for a permit if you want to make any changes to the structure.
Your Living Situation
With a fixer-upper, you may need to choose between living uncomfortably for a few months (while contractors work on your house) and finding somewhere else to live, which could be necessary if the renovations are extensive. If you’re able to hold onto your current home for some time, this is less of an issue. However, if you want to move straight into your new property, choosing move-in ready is likely the better option.
Time and Skills
Many people who purchase fixer-uppers have a strong background in construction or DIY and are able to take on at least some of the work themselves. Paying contractors to do everything can end up costing the same as purchasing a move-in-ready home. Of course, you’ll also need to have enough time to dedicate to restoring your home — always plan for projects to take longer than you think they will to account for delays. The longer it takes to complete your home, the more time you may end up living elsewhere or living uncomfortably.
A factor that may influence your decision is how much you’re able to receive for a mortgage. Since it’s useful to know this early on, make it a priority to talk to a mortgage broker. Fort Saskatchewan home buyers can receive pre-approval from Flare Mortgage Group. Contact us to start the process today.