Should I Buy a Home That Needs Repairs?

If you’ve found your dream home − in the area you want, with a big kitchen, three bedrooms and more − is it worth it to buy if the home needs a little TLC? The answer differs depending on the type of repairs, the neighborhood and more. Keep reading to find out if putting an offer on a home that needs repairs is the right move for you.

Are the repairs just cosmetic?

Don’t get confused between a fixer-upper and a house that just needs some minor, mainly cosmetic, repairs. A fixer-upper usually has a very cheap purchase price because the new owners will have to put in so much elbow grease to get it to livable condition. However, cosmetic repairs are another ball game. These are small tasks like painting, changing the carpeting or installing new cabinetry. If the home you’re interested in only needs cosmetic repairs, it may be worth the money because you’ll get to customize the home a little bit, and the seller might be offering a discount because the house needs a little TLC.

Check the inspection report

Get an inspection report before you buy. Maybe the seller told you that all the house needs is a fresh coat of paint and a little landscaping; but the inspection report could alert you to bigger problems that the seller either doesn’t know about or hasn’t disclosed. If the inspection report mentions foundation issues or that a new HVAC system is needed, this is not the kind of project you want to get into if you’re not prepared.

Will you get good RIO after the repairs are complete?

What kind of neighborhood is the home in? If it’s in a decent neighborhood, close to schools and parks, or if the neighborhood is up and coming, it might be worth buying a home in the area because the value will increase over time. It’s worth it to take on some minor home repair projects for a house in a desirable neighborhood.

Do you have the time to devote to this project?

If you weren’t previously planning on purchasing a home that needs minor repairs, make sure you have the time and patience to put up with the items that need updating. If you have a busy job or kids with demanding schedules, moving into a home that isn’t move-in ready could be stressful. Also, be prepared for loud noises and a little debris if you hire workers or plan to do repairs yourself.

Are you getting a deal on the home?

One of the most important factors is the type of deal you’re getting on the home. If it’s not move-in ready, what’s the incentive to do the repairs and updates yourself? If the seller isn’t offering an allowance for you to do the repairs or isn’t selling slightly below market to incentivize buyers, what’s the point?

Look into a 203 (k) loan

If you find a home that you’re serious about but that requires minor or major repairs, look into financing through HUD’s 203 (k) loan. This type of financing allows you to finance the purchase of the home and the necessary improvements without having to seek multiple loans. Visit HUD.gov to learn more.

If you’re on the fence about making an offer on a house, call me today and I’ll help you decide if a home that needs repairs is the right option for you. Or if you have other questions about the home-buying process, I'm here to guide you!

Moving? Top 5 Tips for Packing

Follow these tips to make packing less daunting and to ensure your move goes off without a hitch.

Moving to a new home can be exciting, the sign of new beginnings. It can also be an exceptionally stressful time.

Getting all your furniture, clothes, kitchenware, electronics and valuables from one place to another is no simple task – whether you’ve hired professionals or are managing the move yourself.

The specifics of each move are different. Moving down the block, from one studio apartment to another, is less complicated than moving from a 3,000-square-foot home in New York to a similarly sized house in California. No matter how or where you’re moving, preparation and careful planning will make the process smoother.

 

 1. Sort, sell, donate or toss

Why move what you don’t need or use? During the days and weeks leading up to your move, mercilessly sort through every closet and drawer. Organize a moving sale, donate items to a charity like Goodwill, The Arc or The Salvation Army, or list them via an online reuse/recycle-type website. Throwing things away is OK, too; some items will simply be outdated or too worn to be of much use to others.

 

2. Make lists, check them twice

Organization is the key to any good move. Make lists of all the people and institutions you need to contact before moving: schools, utility companies, government offices, subscriptions you need to change, etc. You’ll need another list that includes the names of everyone who needs to know your new address, from family members to co-workers. Perhaps most important of all: make a list of things that will be moved, room by room. If you’ve hired a moving company, the movers will work with you to put together an inventory. If you’re moving your own stuff, consider getting an app like Moving Day for the iPhone, which allows you to build a complete inventory and create barcodes for your boxes that you can scan with your phone and document damaged items.

 

3. Over-prepare

If there’s one thing you don’t want to run out of on moving day, it’s boxes. If you’re packing yourself, ask nearby stores, friends and neighbors for boxes. If you buy special moving boxes, ask if you can return any you end up not using. Also make sure you have plenty of tape, furniture padding and bubble wrap to ensure your stuff arrives undamaged. Borrow or rent a dolly for moving heavier items. If you’re relying on friends and family to move you, make it as easy as possible for them. Have all the boxes packed and labeled before they arrive, so all they have to do is pick up a box and carry it to the moving van. If you’ve got professional movers handling the packing, they should come armed with all the supplies you’ll need.

 

4. Label absolutely everything

Mark your boxes with clear descriptions so you can remember which boxes are fragile and which can wait to be unpacked. Even better: In addition to listing contents, label with a destination such as “master bath” or “basement.” Avoid mish-mash boxes and “misc.” labels – those boxes will cause frustration on moving day and beyond.

 

5. Pack an ‘open me first’ box

When you get to your new place, the last thing you want to do is sort through a half-dozen different boxes to find the toiletries and clothes you need. Your ‘Open Me First’ box should include a change of clothing for each family member, towels, soap, shampoo, medicines and favorite toys for the kids. If your morning isn’t complete without a cup of tea, include a tea kettle, tea and mug; granola bars or a box of crackers might also be a nice pick-me-up on unpacking day.

By Mary Boone