3 Ways To Know If A Fixer Upper Home Is Right For You

Buying a fixer upper home can be a big commitment. When a home needs major renovations, the owner needs to decide if they will do improvements themselves or hire contractors, and both involve careful budgeting of both time and money. Doing research before taking the plunge can help prospective homeowners decide if the home they would like to buy is right for them. These tips will help make the decision easier.

Get A Home Inspection

Home inspections help home buyers go into the purchase with eyes wide open. Start by looking for a good home inspector who will be able to thoroughly go over the house and point out the most noticeable or expensive repairs. Some good ways to find a home inspector include:

• Asking for referrals from people who have had home inspections in the past.
• Researching home inspectors in your area.
• Calling a variety of candidates to ask them questions about their experiences as a home inspector.

When calling home inspectors, get answers to questions like:

• How many years have you been inspecting homes?
• Do you have experience inspecting homes from the time period when this home was built?
• How long does a typical home inspection last?
• Do you have special certifications, awards or qualifications?

When the home inspector comes to see the home, go through the home with them. Ask the home inspector questions throughout the inspection process. Some of the best questions to ask include:

• How would you fix this problem?
• What would happen if this problem didn't get repaired?
• How much do you think this problem would cost to fix?
• Would you buy a home with this problem?

As the home inspector goes through the house, write down everything that the inspector says. A good home inspector should turn in a written report to you when the inspection is over, but writing down your impressions and the answers that the inspector gives can help you get started with the next steps right away.

Research the Home's Maintenance and Repair Needs

Once it's known what challenges a potential home faces, and after the prospective buyer has read the official report from the home inspector, this is the time to get started researching the property's needs. To conduct research, start by doing the following:

• Find out the approximate cost of each major repair.
• Prioritize the repairs into different levels of severity, so you know which repairs need to be done right away and which repairs can wait until the home has been occupied for a while.
• Contact contractors in your area to start getting quotes.
• Work with a real estate agent to find out whether or not the home seller might be able to make some changes before you move in.

Determine Your Budget

Once you know which repairs must be made to the home you're thinking about buying and how much these repairs would cost, it's time to find out whether or not this home can be repaired given your resources. Most homes cost around 1 percent of the purchase price in maintenance annually. Fixer-upper homes will often cost more. Work with your lender to find out your budget. Once you know whether or not you can afford to make the changes that need to be made to the house, this will help you decide whether or not the house is right for your needs.

Consult With a Real Estate Professional

Working with a real estate professional throughout the home buying process can help ensure that a home is a good deal, and whether buying a home that needs work is a good way to get into a great real estate market like South Calgary. To get started with an upcoming home purchase, contact an experienced real estate professional in your area.