As you start working on your credit score (check out my last posts), let your mind wander and imagine your first house. Is it in the city or the country? Will you decorate with a modern or rustic farmhouse theme ? And the big question, will it be a fixer upper or move in ready? This is in a series of blog posts I’m writing specifically aimed at young adults or other first time home buyers.
Many home buyers have grandiose plans of buying a house, fixing it up, and then making a huge profit when they sell down the road. While others look for a home in pristine condition, just waiting for a new occupant. What’s the better strategy?
It depends on you!
If you’re considering buying a home to fix up and invest in, then ask yourself these four questions…
- Do I have the skills, knowledge, and abilities to do the work myself? Or do I have the contacts to do the work at a discount? (Family members who are builders etc.)
- If you’re hiring a contractor: Do I have a detailed plan that factors in all the cost of repairs needed? And am I still saving money versus buying a move in ready home?
- Will this neighborhood’s market justify the profit I envision when it’s time to sell?
- Finally: Am I willing to dedicate my time and energy making this house into my home?
Don’t make this decision without counsel. Talk to a builder/contracter about costs, talk to a lender regarding financing options, and talk to me about what the finished home might be worth!
Take the next step in comparing the prices of fixer upper vs. move in ready homes. Download my Home Scouting app to veiw any home on the market (in the West Michigan area). Create an account, enter my VIP code (616-706-8104), and shop for homes like a Realtor!