Kathy A. Torline-Nordstrom
ERA Herman Group Real Estate
Serving Colorado Springs
Want to buy a fixer-upper house in Colorado Springs?
Getting frustrated about the lack of homes on the market? Are you thinking about buying a fixer upper? If so, here’s some tips
If you are a first-time home buyer, first make sure you truly understand the cost of home ownership, including repairs and general maintenance. If you were previously a renter, there isn’t going to be a landlord to call to get things fixed and repaired. You are now the landlord. It’s up to you to keep things repaired and in good shape.
Before you start your home search, first and foremost, have a conversation with your lender. Depending on the type of loan you are getting, the lender may not loan money on a house that is in disrepair. Make sure you discuss your options with your lender. It’s important to understand, that some homes won’t qualify for financing.
Fixer upper homes can be a good dead for home buyers, but make sure you understand the costs. Never never ever forget about the importance of location. If you are buying a fixer-upper in a bad neighborhood, it still may not be a good deal, regardless of the price. It’s still going to be a bad neighborhood. Location is still king.
Survey your personality, do you like fixing things, do you mind living in the mess while you are getting things repaired. do you have the right skill set. Are you a good finisher? Have you done home repairs in the past? Do you have the tools you need to get the projects done? Do you like to repair things?
When evaluating a home purchase, start with a list of things that need to be repaired or updated. Then put together an estimate of costs, including a miscellaneous column. Every home repair always involves some surprises that you don’t plan on. Analyze how you are going to get the funds to pay for the repairs.
A home inspection will also help you see what needs to be repaired/updated. Evaluate if the house is priced correctly, including the costs of the repairs/updates? If a house is priced at $100,000 and needs $50,000 in repairs, is it still a good deal? Maybe, maybe not.
Remember an inspector can’t inspect what he can’t see, so there can still be issues that come up. You’ll probably run into surprises, things you hadn’t planned on. Allow room in your budget for this.
For even more information, contact Kathy Torline by calling or texting 719-287-1049, or email [email protected]