Should you buy a house that needs work?

There are many reasons people decide to buy a house that needs work - to save money, be in a preferred community they otherwise couldn't afford, make the place more personal and suitable for their needs, etc. Although those are all great reasons for buying a fixer-upper, keep in mind that renovating that kind of house is not all fun and games. Renovation and redecoration of the interior and exterior can last for months, even years. Moreover, if you are not careful, this project can quickly eat away your entire budget in no time.

There are many pros and cons of buying a house that needs work. Today, we will share all the good and the bad that come with this 'project.' Keep on reading if you need help deciding whether you should buy a house that needs work or not.

What is a House That Needs Work?

Before we start debating whether you should buy a house that needs work, let us clarify some things. Let us first explain what a home that needs work is. That is a house that requires a lot of structural and cosmetic improvements. Because of that fact, the price tag of this house is substantially low.

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But, even though you can save some money when buying a house of this kind at first, trust us, the renovation and decoration costs will soon add up. Also, you have to consider relocation and moving insurance costs. Thus, you better change your plans if you plan to buy a home, find a moving agency, get insurance, and be worry-free during the relocation and moving-in process. Doing this house's necessary work will be time, energy, and money-consuming. 

A house that needs a lot of work also goes by the name fixer-upper.

Who Are the People Buying These Kinds of Houses?

People buying houses that need a lot of work are usually investors or so-called home flippers. These people purchase run-down houses for a relatively small price, invest their money in the renovation, and sell the home for a profit. However, you do not have to be an investor to buy a house that requires much work. You may be just a person on a budget or someone who couldn't find your own dream house, so you decided to buy something that you can renovate and redecorate to fit all of your needs. As you can see, anybody can buy a house that needs renovating.

But be careful; if you do not know what you are doing, making this decision can be catastrophic! It can consume your time, energy, and nerves and leave you bankrupt or barely breaking even. Thus, if you are a first-time home buyer or do not have any experience renovating homes from scratch, or even if you need to move in quickly, it is better to stay away from homes that require a lot of work.

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Let us help you. Call or Text Kenna Real Estate at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.

The Good Side

Now that you know what a home needs work, let us share all the good news. Namely, these kinds of homes, the so-called fixer-uppers, come at a much lower purchase price. Everything from the downpayment to closing costs is considerably cheaper than for a new, staged home. Moreover, these kinds of dwellings attract few buyers, so there will be less competition, which means that you will be dictating the price when making an offer

One of the best parts of buying a house that needs work is that you can customize it to suit your needs and preferences. And most importantly, while making these customizations, you will be in charge of quality control. 

The Bad Side

Everything that has pros must have cons as well. The same is true with buying houses that need a lot of work. One of the most significant downsides here is tricky budgeting. Fixer-upper homes need everything fixed, so financial chaos is bound to happen if you do not plan your budget correctly. The next considerable disadvantage is long-term construction. Renovating the entire house can last for months, as previously mentioned, which means you will have to postpone your relocation process and find another home to live in until this one becomes 'livable.'

Of course, you can also likely live in a fixer-upper house, but that will mean living on the construction site. Different workers will be your housemates for months, so prepare for that mentally! Moreover, prepare yourself for all the unexpected issues that will come up along the way - they always do and are always expensive!

Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.

Conclusion

As you have seen, buying a house that requires substantial work comes with many pros and cons. Of course, everything depends on you. Some of the downsides we mentioned may be something other than downsides for you. Some people, for example, enjoy being a part of their house renovation - they want to participate in all decision-making to get their dream home. 

We strongly advise you to consider everything before you buy a house that needs work and discuss with experts if necessary. You can talk to professional contractors or construction workers and get their advice. Also, you can chat with people who flip houses all the time - they will tell you how much time, energy, money (and nerves) you need for something like this. And, most importantly, remember to talk to the people who will be moving in with you. Talk to your partner, parents, children, etc., and see whether they are ready for such an endeavor.

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