The phrase “fixer-upper” has such a broad scope that it can encompass even the most dilapidated and derelict houses. In this post, we will delve into the advantages and disadvantages of buying a property that requires only minor repairs. Discover more about what lies ahead in our most recent article!
The prospect of purchasing a home at an exceptional price can be incredibly enticing. Sometimes, this is the avenue people use to secure their property significantly under its market value! However, akin to any other real estate acquisition, there are a few crucial aspects to comprehend. Here’s a compilation of advantages and disadvantages to assist you in making an informed decision when purchasing a fixer-upper in Rancho Cordova!
Pros
Lower Purchase Price
The primary appeal of purchasing a fixer-upper lies in the potential monetary savings. When a property requires renovations, sellers are generally open to negotiating a lower price. Depending on the extent of the refurbishments needed, acquiring a fixer-upper can provide an excellent opportunity to secure your dream home at a price that fits within your budget.
Less Competition
Ultimately, a significant portion of homebuyers prefer to avoid purchasing properties that require additional time and money for repairs, considering the existing costs of relocating and acquiring a house in Rancho Cordova. As a result, you’re likely to face less competition when buying such a house, giving you a stronger negotiating position and potentially leading to a lower overall purchase price.
Freedom of Design
Acquiring a house that requires refurbishments, particularly in the kitchen or bathroom, grants you the liberty to tailor the design to your preferences. Consequently, not only do you save money on the purchase price of the house in Rancho Cordova, but you also get the freedom to select the tiles, fixtures, and other details. Moreover, it presents an excellent opportunity to repaint or replace the carpets prior to moving in any furniture. One of the main reasons people buy properties that need fixing is the ability to genuinely transform the house into their personalized home.
Cons
You Will Spend More Than You Planned For
Certainly, it’s prudent to allocate an additional 20% on top of your initial renovation budget. This is because you’ll likely run into unplanned costs or discover other aspects you’d like to enhance during the renovation process. By integrating these “unexpected” costs into your budget from the start, you can avoid the unpleasant surprise of hidden costs and prevent the potential scenario of residing in an incomplete house.
You Might Be In Over Your Head
Indeed, home renovation shows like those on HGTV often portray a rosy picture where a couple effortlessly transforms a rundown property into their dream Rancho Cordova home within the span of a half-hour episode. However, the reality tends to be far from this. There could be logistical issues, complications with construction permits, delivery problems, and disputes with contractors, leading to numerous challenges in the renovation process. Nonetheless, if you are aware and prepared for these potential hurdles before making the purchase, you can save yourself significant amounts of time, and money, and avoid undue stress.