Let’s say you’re looking for a new home–you check out the market, looking for a property that’s just right for you, after going through the options you have your top picks: One is an absolutely beautiful house, ready moving in, needing no repairs, but it’s a bit on the pricey side. The second pick is definitely more in accordance with your budget, but it also needs some work done to be in tip top shape; do you go for the bargain or splurge?
It’s not that simple, like any good purchase you gotta do your due diligence before you commit and in this case it all comes down to answering one big question: Is your budget capable of handling the repairs and renovations?
Fixer-uppers seem like the obvious cost-effective option–especially in a seller’s market like California, where there are way more buyers than homes for sale–but you need to keep an eye on many other things, like the amount of supplies and work you’re gonna need to fix the property, or if there is room in your schedule to handle the project. If the remodel goes over the budget you may end up paying just as much, if not more, than you would have for a move-in ready home.
Buying a fixer upper offers its own advantages, such as being able to customize your new home and choose the finishing touches yourself, or lower property taxes, but the renovations can be an expensive, time-and-energy consuming hassle. Don’t rush, calculate the cost, check your schedule for the coming months and ask yourself: Can I really make this house into my dream home?