Should I Buy A Fixer-Upper For My First Home In Harford County
Are you thinking about buying a fixer-upper as your first home but are unsure about what’s involved or if it’s a good idea?
I am going to go over the pros and the cons of purchasing a fixer-upper so you can make sure you are making the right decision and not ending up with a money pit.
Make sure you stick around to the end to hear the biggest mistake I see people make.
Before I start listing the pros and cons, I want you to answer some questions. Get a piece of paper and write down the answers because you will use this to help make up your mind.
○ 1. How much time do you have to devote to working on the house per week? Are you willing to give up all your free time to do so?
○ 2. Are you ok with living in a construction site? I’ve renovated all four of my homes throughout the years and being able to live in a construction site is one of the hardest parts.
○ 3. Do you have enough extra money for when things go wrong? And believe me, they will go wrong.
○ 4. Do you have a timeline in mind? If you do, are you ok with the project going weeks, months, or years past that date?
○ 5. Do you handle stress well?
○ 6. Are you paying someone to do the work or will you be handling it? If you are paying someone, are you ok with living with their schedule?
Now that you have honestly answered all those questions, they may have already helped you make a decision. If not here are the pros and cons:
Pro:
Most likely a fixer-upper will have a lower purchase price or an easily negotiable price.
Con:
Most of the time there are hidden issues you won’t know about until after you have started renovating.
Con:
Almost every rehab project will run over on both time and money.
Pro:
You get to make the house your own. You get to pick out everything and make it look the way you want.
Con:
Fixer-uppers can be extremely stressful. From missing timelines to living in constant dust, or finding a ton of hidden issues they will always keep you on your toes.
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Pro:
You can gain equity which is so important for your first home. Most people sell their first home within 5-7 years so you want to make sure you owe less than it’s worth.
Con:
Depending on what you have to complete while you are working on your house, you can kiss your weekend goodbye. Renovations are very time-consuming, so usually you’re wanting to get a project completed, far outweighs going out on the town.
So that being said, I think the biggest mistake people make when buying a fixer-upper is thinking it’s going to be like something they saw on HGTV.
TV edits out the extensive timelines, the hang-ups, the added costs, and the frustration to fit in an hour-long segment which makes it seem a lot easier than it truly is. Tons of blood, sweat, and tears will go into it and you need to make sure you are willing to make the sacrifice. If you answered all my questions with a yes, then buying a fixer-upper might be something for you. If you are hesitant with some or all the questions maybe you hold off or find a house with maybe 1 project instead of several.
Now that you know if you want to buy a fixer-upper or not, make sure you watch my next video “How to Know When a House is Right for You.”
How will you know if you are buying the right house and not regret it later? I will go over all the things you need to think about so you can be confident in your choice and not have buyer’s remorse.
If you have any questions about the information I have covered in this video or just anything related to real estate in general, please don’t hesitate to reach out!