Tips for Buying Your First Home and Fixer-Upper
So the home of your dreams costs a bit more than you expected. Surely there’s a better way to buy your first home without settling for less than what you want. Well, there is: buying a fixer-upper. A fixer-upper can be a great compromise in getting the kind of house you want if you’re ready to put in the elbow grease. Keep in mind this investment requires savvy and wisdom, and Bay Area Housing Trends hopes the following information will help you on your journey.
The Ups and Downs of a Fixer-Upper
First, you need to make sure this is the right option for you. Consider some of these realities of buying a home as-is:
- You must budget for renovations on top of your mortgage.
- Structural integrity is far more important than looks. If you only have money for one of those things, make the wise choice and do design updates later.
- This may not be a good investment if you don’t have any DIY skills. Read these six hard truths about buying a fixer-upper from Inman before you invest. If you think you’ll run into these problems, don’t do it!
However, if you fully understand what’s involved and are still interested, it’s time to start looking for a home.
How to Find the Right Fixer-Upper
Cosmetic issues can make a home look unsightly, but if the foundation and all the major internal parts are sound, the house can be a great investment. On the other hand, problems with the foundation, roofing, and structure can be expensive to fix. Other pricey items include sewage, septic tanks, heating, ventilation, air conditioning, mold, and replacing decks and driveways.
With that in mind, search your neighborhood for fixer-uppers to gauge pricing. When you start looking at the house itself, take a close look as you walk through it for flooding and water stains, rotting roof beams, and any cracks in walls or foundation.
Your next step will be shopping for mortgages. Many first-time home buyers choose to take out an FHA loan because these buyers often don’t have long credit histories. Another option is to take out a VA loan if you’re a veteran. These loans allow qualified buyers to purchase a home with no money down and typically include more favorable terms. Check the latest fixed mortgage rates to get an idea how much you’ll need to spend each month.
Before purchasing a fixer-upper, it’s crucial that you hire a qualified home inspector. A home inspection can uncover underlying issues with the home’s foundation, structure, electrical and plumbing systems, and much more.
What to Do After You Buy
Once you’ve bought your home, it’s time to get started on the work. How can you get started? These tips will help you get through.
- For every project that you will handle yourself, make sure you have the right tools on hand: drills, sanders, jigsaws, etc. Buy small tools for everyday repairs and rent or buy the big ones for major projects as you go along.
- You are most likely on a tight budget. These tips from Today can prevent your home from becoming a money pit, including vetting and communicating properly with your contractor.
- To save even more, get wildly creative (like painting an old refrigerator) and learn new DIY skills.
- Can coupons and clearances work? They sure can! Read these frugal renovation suggestions from Making Money of Cents.
Once you are ready to start renovations, the question is where do you begin? Making living arrangements ahead of time is just one of the tips recommended by Life Storage Blog to help reduce the stress during your renovation. The more you have prepared in advance, the smoother things will go.
Buying a fixer-upper is not for everyone. However, if you are prepared for everything, from choosing the right house to making frugal choices for your renovation, you can create your dream home on your budget.
