When you decide to move, whether it’s because you are ready to move up from an apartment to a house, or because you want a larger house, you need to choose whether to buy a turn-key property or a fixer-upper. Buying a fixer upper in Guilderland, NY has its pros and cons, and whether you choose that option depends on your knowledge of repair or how deep your pocket are.
Pros of Buying a Fixer-Upper
The biggest pro of buying a fixer-upper is the price. Depending on how much work you need to do, the price could drop significantly. And, if you are able to do most, if not all, of the work yourself, you’ll save a bunch on the rehab, too. This could allow you to move to an upscale neighborhood that you otherwise would not be able to afford.
Cost of Home
When buying a fixer-upper, be sure to check everything that needs to be repaired and price out the repairs. Add the cost of the repairs with the cost of the home to see if the total is equal to or less than what the house would appraise at if it was in perfect condition. If the repairs plus the price of the property is over and above what it would be listed for in perfect condition, it’s not a deal.
Taxes
When you buy a house, the taxes are based on the sale price. A lower sale price means lower taxes. Depending on the area you are in, you may be able to claim an investment tax credit for certain rehabilitation costs, though that is usually for homes listed on the National Register of Historic Places.
Design and Value
With a fixer-upper, you not only get to design your home the way you want it, but the upgrades you add in will increase the value of the home. For example, if the counter tops are trashed and need to be replaced anyway, and you go with granite, then you have an upgrade that increases the value of the home.
Cons of Buying a Fixer-Upper
The biggest con of buying a fixer-upper is all the extra work you have to do. Or, the money you will most likely be putting into your purchase that comes out of pocket. The other con is the time it takes for the rehab to take place. This means that you won’t be able to move until you finish the rehab. The more extensive the rehab, the longer you’ll be in your current home.
And, of course, there are the surprises. You might not notice something behind the walls, such as a broken pipe or bad insulation. When you do buy a fixer-upper, be sure to pad the rehab for these types of surprises, especially if the home is older.
Contact CM Fox Real Estate
Whether you are looking for a fixer-upper or something to move into right away, contact CM Fox Real Estate to help you find your dream home.