Purchasing fixer-uppers rather than new homes can seem like exciting endeavors thanks to television. However, these types of properties can require a great deal of work and thus pose a major financial risk. A few tips may help with making smart fixer-upper real estate transactions in New York.
First, finding a fixer-upper requiring only cosmetic changes is expedient. Such cosmetic changes may include the removal of wallpaper, siding repairs, the installation of new floors or bathroom renovations, for example. Purchasing a home that has major flaws, on the other hand, can be a major mistake due to the costs involved. Major flaws to avoid include water damage, foundation issues or terminate damage. Furthermore, for a home requiring a new HVAC system, the discount on the price of the home ideally needs to be large enough to cover the cost of a new system, which can be pricey.
Second, after determining what changes need to be made in a potential buy, getting estimates of how much they will cost is wise. Doing this before making a house offer is critical. A contractor may charge hundreds of dollars to repair what is needed, but this cost will likely be worth it in the end.
Buying a house -- fixer-upper or not -- is a major decision, as a home is oftentimes one of a person's most valuable assets. Not only can the process of shopping for a home be daunting, navigating the legal aspect of a deal can be overwhelming. A qualified real estate attorney can provide the necessary guidance in these types of real estate transactions to make sure that a client's best interests and rights are upheld in New York.
Source: realtor.com, "Buying a Fixer-Upper? Better Read This First", Audrey Ference, Dec. 19, 2017