If you found the perfect fixer upper but aren’t sure if it’s right for you, here are some pros and cons to consider.
Some pros to buying a fixer upper include
Lower monthly mortgage payments
Most of the time, fixer-uppers have lower prices than brand new homes, making the monthly payments lower. This gives you more money to redo parts of the home or more money in your pocket.
You can redesign the home into what you want; without the hassle of building it. This gives you the rare chance to add your own personal touch by customizing it to your design.
Work at your own pace
Unlike buying a home, you can work on parts at a time. Consider redoing the house one room at a time. You can do the bathroom and then save money to do the kitchen next. This gives you the opportunity to determine what gets done when and to spread out the cost over a period of time.
Your property taxes will be less because they are based on the sale price of the home. This gives you the opportunity to redesign other parts of the home because you have extra money.
Some cons to buying a fixer upper are
Time, time, time
Fixer uppers can be very time consuming, projects can take hours’ just researching options and vendors.
Fixer uppers are usually older homes which can come with a wide range of challenges. Some older homes have mold, faulty plumbing or outdated electrical wiring needing replaced. Be cautious when buying an older home and know what you are walking into.
Going over budget
This is very easy to do in a fixer upper. The home may not seem like it’s not going to cost a lot, but over time things add up. Inspectors can find flaws or repairs in the home that you were not expecting.
You might get stuck with it
A fixer upper is not the best option if you plan on moving out of the home soon. The home may not sell as quickly, leaving it all to you.
If you are considering a fixer upper and are in need of a renovation loan or have any questions, check out our rehab loan today!