Homes that have been damaged – this can range from holes in the walls to property that have been flattened by a tornado – are often referred to as fixer-uppers, handyman specials or damaged properties.
People buy damaged properties for a variety of reasons, most commonly because they can be potential bargains (since the property has been damaged, the price is reduced). Other people who love the creative process of home renovation and home remodeling, work with realtors who show them only distressed properties. And some people aren’t looking for a “handyman special” at all, but happen to fall in love with an older home that needs a lot of work.
For whatever reason you buy a fixer-upper, it can be a good financial deal and a rewarding experience if you go into it with your eyes open and have a plan for repairing the damage. However,
Sometimes It Is Just Not Worth It
Home renovation is a good investment – per square foot, you can’t build for the price you can restore it. A family can restore an old home for a half of the price of a new home. The problem is, though, that many families spend the bulk of their available cash to buy a damaged property, and are left with nothing to pay for fixing it up.
What To Watch Out For
Avoid houses with damaged roofs that need roof repair, water in the basement that will need waterproofing and weatherproofing, watch out for termite damage, off-level foundations and sagging floors that can’t be easily straightened (no matter what the bargain price is) unless you are sure you can handle the home repairs. Keep in mind, that if the building doesn’t qualify for a Certificate of occupancy, you will have to get a building plan, which by the way costs more than a morgage.
If the price of a damaged family house is too high, and the contractor’s services are too expensive, and it doesn’t add up to a financially sound investment, wait for something better to come along. There are a lot of opportunities out there.
If This Is Your First Home
If you are buying your first house, it is usually wise not to take on a major renovating job. Get experience, get to know the prices and learn a little about plumbing, heating, lighting and wiring before making your first home renovation. Only if the price is right, you might want to take a chance.
