Details for CONTENT
B Buying a fixer upper uying a house that needs work can seem like a great way to save money as homeowners typically ask for less for a house that needs a lot of repairs. for some buyers, this is a good option; it allows them to get many of the benefits of designing a home without building from scratch and means a smaller loan amount and smaller monthly payments. However, don’t be blinded by a smaller loan. Home renovation is expensive, and you’ll either be paying a contractor a fair amount for updates or doing a lot of the work yourself. LearnVest spoke with a real estate agent about what you should consider when you’re thinking about a house that needs some TLC. Do You WanT a Dream Home? a fixer-upper allows you lots of opportunities to make the house your own. Since it already needs the work, you can rip up the floors, knock down a wall or two, change the lighting fixtures or baseboards, put a deck in the back, add a window — make it what you want. This is typically less expensive than building a new house. Can You Do THe Work YourSeLf? Consider your knowledge and ability to do the needed contracting work. How much time the work will take and do you have that time? What tools will you need and will you buy or rent tools? Do you know what you want the house to look like, work, check the local zoning and are you able to do the laws and get the necessary design work? permits. If you’re going to do any of Do You HaVe the work yourself, including enougH moneY? building anything new, makYou might need to budget ing structural changes or for some professional work, doing electrical or plumbing such as having an architect do the design work or paying an electrician or plumber. You also should look at the type of renovations needed; rooting out black mold, redoing the foundation or replacing the roof are very expensive. a conventional mortgage will not pay for remodeling work, but homebuyers can get a 203k loan, which is insured by the federal Housing administration, that allows for renovating.