Buying a Home? Why a Fixer Upper is a Great Option
Buying a home is an exciting time. It's a time that promises change, opportunity and the ability to make something as important as a home, your very own. When you're looking for a new home, consider buying a fixer upper. Here's why:
A fixer upper can save you a ton of money. Most home buyers want to walk right into a home that is ready and waiting for them. They don't want to have to do any extra work to make the home a nice and comfortable place to live. Many aren't even willing to change the paint colors. They want it move-in-ready.
This makes fixer uppers a good value because in order to compete with the move in ready homes, they have to significantly lower their asking price. This is especially a good opportunity for someone in a market that have way more demand than supply like Toronto, Mississauga, and the Cambridge area. In such a hot sellers market, buyers are competing for move-in-ready homes so the homes that needs a little TLC or needs major work typically aren't as competitive. Often you can buy a fixer upper in a good neighborhood and save 10, 20 even 30% on the home relative to the other homes in the neighborhood. As a buyer this means more cash stays in your pocket and in your bank account.
A fixer upper also gives you the unique opportunity to make money on a home. You've probably heard the term "Flipping" This is a term for people who buy fixer upper homes, fix them up, and then sell them for a profit. If you buy a home, that's in a good neighborhood, and fix it up, you can often make thousands, sometimes hundreds of thousands, of dollars in profit.
Now, even if you're not a professional home flipper, you can make money on your home. Buy it at a low cost, fix it up, and you instantly increase the home's value. When you're ready to sell, you will likely recoup all your investment with a bit of extra profit on top.
Buying a fixer upper also means you can make the home uniquely yours. Moving into a move in ready home means you're likely going to have beige walls, beige carpet and beige tile. Sure, it goes with everything but it doesn't have much personality. Being able to update the house to your personality will make it a more enjoyable place to live.
Fixing up a home is rewarding. We've talked about money and comfort but we've yet to mention that fixing up a home can be emotionally satisfying. There's just something very rewarding about improving a home. Turning it from drab or downright ugly to a place you can be proud of.
Now, when choosing a fixer upper, experts advise steering clear of homes that need structural work. Generally, you want to find a home that needs cosmetic improvements, not a complete overhaul from the foundation up. Structural improvements and major renovations can get expensive and you may find you're in over your head.
Search for your new home carefully. Evaluate the pros and cons. And don't neglect the homes that need a bit of repair, they can offer great bang for the buck and tremendous satisfaction.