The New York Times had an excellent article this past Sunday regarding homeowners buying fixer uppers. Not necessarily because they want to, but because it’s what they can afford in order to enter the real estate market.
Unfortunately I think the HGTV culture leads lots of people to believe that home renovations are much easier than they really are, and that the renovations cost less than they really do. Remember, when you watch an HGTV do-it-yourself renovation show, they typically are only quoting the materials and are not taking into account the cost of the laborers doing the actual work. As far as you and I are concerned, the plumber or electrician isn’t really going to work for us for free.
So if you are in the market for a true fixer upper, here are some things to think about…
1. Is the house livable? Are you going to be able to stay there while you do the renovations or do you need to have other accomodations? I have a client that recently closed on a property and they live in about one-third of the house while they fix up the remaining two-thirds. It works fine for them, but I know it would not work well for others. You have to figure out your comfort level.
2. Do you have the cash available to get the necessary work done? Your agent and a general contractor should be able to give you rough estimates of what the renovations will cost. Can you do all of the work immediately or will it need to be staggered over several months or years?
3. If you have a partner, is your relationship a strong one? Major renovations that you personally undertake can be very stressful. They usually take more money and time than expected, and you may not have the same ideas as your partner. My husband and I once took on a porch renovation project that he and his dad thought they could do in a week. Three months of continuous evening and weekend work later, our neighbors were remarking they were surprised we were still married! Make sure your partnership can endure this type of stress before embarking.
Fixer uppers really aren’t for everyone, but if you’re willing and able to put in the work, you may be able to get the home of your dreams that would otherwise be out of reach. It might just take a few months or years to actually turn it into the home of your dreams.