Maybe you like the idea of landscaping, decorating, and remodeling. But if you’re a first-time buyer, it’s easy to romanticize the outcomes and forget about the steps it takes to get to a final product. Consider the following before you buy a home that requires some work.
It takes time to get results. Enjoy those home-renovation TV shows? Everything gets demolished and rebuilt in an hour or less. Sometimes they show the tough stuff, but there’s a lot that ends up on the cutting-room floor. And, projects can take hours, weekends, weeks—even months. Compare what you’re interested in tackling with what you can sensibly handle. Determine how much DIY work you can manage or if it’d be better to hire a pro.
It’s not free. Any type of change will cost you something, whether it’s $75 for some plants or $7,500 for a brand-new deck. Be prepared for costs outside of the typical home-purchase calculations, such as tools and supplies, hiring professionals, permits, and unexpected surprises over a project’s duration. Your REALTOR® can help you get a clearer picture of those potential costs.
You’ll experience the most enjoyment out of your own home if you’re honest with yourself about what you’re capable of. Don’t be afraid to ask your REALTOR® for information about what it takes to undergo home renovations.
There is a whole industry of wholesalers out there that prey on green investors. A green investor is someone new in the investor business that will typically underestimate the cost of repairs to buy a home to flip. The term “buyer beware“ is an oversimplification. The saying “You make your money when you buy them” applies wholeheartedly as a warning to those the overpay. On the flipside, don’t be suckered by inflated resell value estimates.