Before Taking on a Fixer-Upper Right Now Consider These Current Issues!
Fixing up a property can be a fun, fulfilling experience for many homeowners. But fixer-uppers can be challenging in the best of times—and with some of the challenges in today’s market, this doesn’t exactly qualify as “the best of times.”
A recent article from realtor.com outlined some of the reasons why now might not be the best time to buy a fixer-upper property, including:
Material costs are high… The pandemic has created a high demand for home renovations, which has sent the prices for materials through the roof, doubling—or even tripling—in many cases. So, the renovations that you need to make on a fixer-upper property? They are likely to cost significantly more than they would have at this time last year.
…and crews are busy. The demand for home renovations also has many contractors booked out for months—which means that, if you buy a fixer-upper, you could have to wait a significant period of time to start tackling projects.
There is a higher risk for issues. Any property could have issues you don’t notice on your initial viewing—but the risk of safety, environmental, or inspection-related issues is much higher for older homes that need a lot of work.
The Takeaway:
Bottom line? There are definite challenges associated with buying a fixer-upper in today’s real estate market—and buying a new construction or a newer home with fewer necessary repairs is probably going to be a safer bet. But if you are set on making a fixer-upper purchase, talk to your real estate agent. They can help you better understand the challenges associated with buying a fixer upper—and help you get a plan in place for navigating those challenges.
