Perhaps, because, house – prices, are high, in many areas, or, because, many cannot afford the home of their dreams, we witness, people, looking, at less – than – stellar homes, and properties, which are often, referred to, as, fixer – uppers, or Handyman Specials. After, over 15 years, as a Real Estate Licensed Salesperson, in the State of New York, I have come to the conclusion, it’s necessary, to proceed, wisely, before pursuing this course of action, because, there are several, significant items, to consider, before, proceeding, forward. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 7 factors, to consider, before taking this path.
1. Determine condition, especially, weaknesses, concerns, etc: The first thing, to do, is to carefully, examine (and, if uncertain, obtain the services of a home inspection, expert), the, so – called, bones of the house! If the heart – of – the – house, is weak, walk – away. Remember, don’t be attracted, simply, because, you can purchase a house, for a low – price, before examining what it might take, to bring it up, to the level, you might feel comfortable with. How much can you do, yourself, and what might you need, to hire others, to achieve? What are the zoning, building, and other codes, in the specific region? Consider factors, such as inconveniences, etc, before making any final decision! Will fixing a Handyman’s Special, make sense for you?
2. Is necessary/ needed work, cosmetic, major/ structural, or in – between: Appearances, sometimes, may fool you, because, whether, this makes sense, often, depends on, whether, the home improvements, are, cosmetic, or, major and structural issues! This is why, before proceeding, it’s essential, to hire a professional, licensed home inspector, or home engineer!
3. How handy, are you?: Those, in, the trade, or, with friends, willing, and able, to help, etc, often, can take advantage of these potential opportunities, far more, than, those, who will have to hire trades – people, to do everything!
4. Urgency: How quickly do you have to move – in, to the house? Can the needed work, be, safely performed, while someone lives there? How long, might it take, to get done? What areas, are most pressing, and urgent, and, you should create, an action plan, to do work, in a strategic, priorities – based, way?
5. Total cost to restore: Consider, the worst – case, scenario, and determine, the total cost, to restore, as you might desire! Add this, to the cost of acquiring the property and house, to discover, your total cost of purchase, and whether, it makes sense, for you!
6. Know the local real estate market: Where is the house located? What are the competing houses, in the area, selling for, on the real estate market? Does it make sense, to spend less for a Handyman’s Special, and improve it, or, would you be, better – served, buying a house, with, perhaps, better bones?
7. Foot – print: Know the zoning rules in the area! Many locations, have specific rules, in terms of the percentage (maximum), of a house’s interior, square – footage, and the size of the property lot!
Since, for most, the value of their house, often, represents, their single – biggest, financial asset, doesn’t it make sense, to proceed, wisely? Will you work, in your own, best – interests?