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step8martin1
02-04-2009, 02:43 AM
Later on in the year, I plan to buy my first home. My sister and I were talking the other day and she that I should buy a fixer upper because it would be cheaper. My sister is an HGTV junkie so I'm assuming that's where she got the idea.I never really thought about it until now. Have any of you ever dealt with fixer uppers houses? What are some of the things involved with these type of properties?

blackbeauty398
02-12-2009, 03:34 AM
I know this is a late response but here goes:

A fixer upper may be cheaper for a purchase, however the repairs may end up costing you way more than the home is worth. And if you get a home that is sold AS IS, it means just that. You get no support if after you close and discover there's mold in the basement walls or something of that nature. If this is your first home, try to get one with minimal work or move in ready. Right now, you can get a good deal on a home and it doesn't hurt to negotiate a bit.

If you plan on purchasing later this year, put yourself on a budget now and make sure there are no mistakes on your credit report. That way when it comes time to get quotes from mortgage lenders, you won't have to worry about any surprises.

CuckooPuffs
02-12-2009, 08:11 PM
Beware when dealing with Fixer Uppers, there can be number of factors why it's cheap. The main reason, being the lender is trying to get it off itheir books or stir up some competition to drive up the listing price for the property to increase their profit (or at least to recover some the money they've lost already on the property). You'll definitely want to have the property fully inspected. You will need to find out when was the last time that the electrical and plumbing has been updated if it's need. If there's any insulation in the walls, you want to update it, whether there's toxic mold, termites or other wood destroying bacteria that you need to get rid of and whether the roof shingles need replacing. Definitely check the foundation if it's on basement or crawl space. You've definitely whine up paying more in renovation costs (even more than what you brought it for, twice over) for the house, to have it meet your specifications to live in it comfortably.

sunschild57
02-14-2009, 06:52 PM
Tell your sister to stop watching so much HGTV. Tell her she should watch some of the shows on the DIY Network. There is a show called Renovation Realities that is as close to what really happens when you buy a fixer as any show on TV. If your budget is $10,000 for a project, you'll probably end up spending $30,000-$35,000. Unless you're married to a renovation expert or are one yourself, STAY AWAY FROM FIXERS!

Peaches
02-15-2009, 06:20 AM
Definitely get two or three inspectors to look at it. Fixer uppers for sale are usually due to the sellers not taking care of the house, not having the money to get the repairs done, and dumping the stress and responsibility on you to get it done. There could be electrical problems, plumbing problems, and all kinds of other things.

anabwi
02-16-2009, 07:48 PM
If the deal sounds too good, it is......................RUN :bolt:

bonbonita
02-19-2009, 08:39 PM
This is something that my SO and I are currently looking into...except we are looking to buy a foreclosed home instead since we are in an area that...well...a lot of that is going on. His mother has a lot of experience in regards to what to look for when buying a foreclosed home. Reading the fine print in contracts and also what to inspect. We are also lucky that his father has inspection experience so we can double check with his father's knowledge also.

His parents bought a foreclosed home and the tenants before them (out of anger of losing their home) put holes in the house in random places and then poured ammonia (spelling?) in the water...luckily his parents knew ahead of time what to inspect....so you have to be VERY CAREFUL when buying a fixer upper or a foreclosed home.

My SO and I don't mind "cosmetic" issues like walls that need to be repainted, holes in the wall that can be fixed or general dirtiness lol (we can clean off blood stains if needed :P I kid....). But we are rather more concerned with structural things such as...updated roofing, proper plumbing, zero mold issues etc. So things that will cost an arm and a leg to fix, we will avoid like the plague. But if it's mostly cosmetics and non costly things...then we are up to it.

We just feel as first time homebuyers, we are not going to try to be fancy. :P Because we are not interested in half of our income going towards a mortgage.

I have to admit, watching HGTV is ADDICTING, and I already have all kinds of useless decorating skills that I am DYING to put to work, and I LOVE the idea of fixing up something that looked like a hot mess before my handywork.....but I am NOT about to try to rennovate. Nope.

CuckooPuffs
02-22-2009, 05:09 PM
ITA with what other poster said. HGTV is addicting & so are the other home renovating shows. Don't let your feelings for a house shadow the $$$ costs of fixing up a foreclosure. It's the hidden defects that you don't see that will push your renovating budget over top of what you want to spend. Also have them do a thorough Title check on home's title. You don't want no surprises if a secondary lender tries to file another foreclosure proceeding on a home you just brought. It can happen.

step8martin1
02-26-2009, 09:05 AM
Thanks for the advice ladies. I know fixer uppers would be a big project and I myself can barely put a nail in a wall let alone anything else. The thought at first seemed like a good idea, but with the money that I would possibly be putting into the home for repairs could be used to purchase a home with far less issues. Again thanks.