Sometimes the house you want to buy isn’t perfect. It may need a new roof, the kitchen may be 15 years old, or the wiring may be too outdated for your needs. Even if you’re excited by the challenge of buying a “fixer upper,” it’s important to consider the costs of remodeling a home when you make an offer. WE spoke with real estate agent, Darrell Done about what you should consider before sealing the deal.
First, calculate the cost – make a list of everything that needs remodeling, such as an old roof, an ugly kitchen, or loose steps. A home inspection helps: a professional inspector can spot problems and weaknesses you might not notice. Once you have a list, ask contractors to give you a rough estimate on the cost of repairs or renovations. If you’re thinking of fixing it up yourself, the estimates can fill you in on the cost of supplies.
Always exercise good judgment – don’t bite off more than you can chew, particularly if you’re planning to do the work yourself. If the problems are cosmetic – faded paint, unkempt landscaping – they’re usually cheaper and easier to fix than defective plumbing and heating.
If the house has serious issues and doesn’t have compensating attractions such as a great location or a good floor plan, it may not be worth the cost of remodeling. It may be difficult to resell and recover your costs when you’re ready to move on.
If you and the seller are far apart on price, you can either walk away or negotiate a more attractive deal. You can raise your initial offer – assuming the house is worth it – if the seller lowers her price. The seller might also agree to pay for some repairs if you agree to her asking price. Obtain a second home inspection to confirm that repairs were properly done.
For your real estate needs visit Darrell Done at www.darrelldone.com.
