A fixer-upper home can be just what you're looking for.
For many people, owning their own home is a dream come true. This might have been your goal since you graduated college or since you started working full-time. No matter what type of home you choose to buy, it is always going to be a very significant investment of both time and money. However, if you are willing to invest a little more time, you might prefer buying a house that needs repairs. These homes are often referred to as fixer-uppers, and the extra money you save on the initial cost of the house is used to repair and fix up the house to make it your own. Does this Spark an idea?
Instructions
1. Figure out how much money you have to invest in the house. This should include the up-front cost for the house, as well as how much you can afford to spend on repairs.
2. Inspect the house carefully. Determine all areas of the home that need repairs. Talk to the current owners about problems, and if necessary, hire a professional home inspector to help you assess the condition of the house to determine what repairs need to be made.
3. Calculate the full cost of all the repairs that need to be made. Contact companies you plan to hire to help make the repairs and get detailed estimates that include materials and labor. Have these repairs, as well as the inspector's notes and recommendations, added to the real estate contract for the house.
4. Talk to your financial institution about receiving a home renovation loan. This is the preferred method of getting the up-front money to make the necessary repairs on the house. Make sure you can secure a loan that works for your financial situation before you commit to buying the house. The financial institution may be willing to combine your home loan and the renovation loan into one amount and one payment.
5. Make an offer on the house that needs to be repaired. The offer should be about equal to the home's value after you make the repairs, minus the costs of renovation and an additional 10 percent for unexpected costs, which are inevitable with most fixer-uppers.
Tags: buying house, cost house, financial institution, make repairs, need made, renovation loan
