Buying a dirt-cheap home and spending some money to renovate it can seem like a great idea, but many people are unaware of the amount of effort projects like that take. Weigh up the pros and cons of buying a fixer-upper and present them to your readers in an unbiased manner. So is Buying a Fixer-Upper Worth It? Let’s look further.
It’s hard to say if buying a fixer-upper is worth it. This question could be based on whether or not you have either time and the talent to make the repairs and or you have the money to have someone do the work for you. Major issues with a home can cost in the thousands. For example, an average roof costs anywhere from $7000 and up.
So what is the cost to replace a roof in Florida? The most common roof a homeowner will install is a Shingle Roof. According to homewyse.com, a shingle roof in Sarasota Florida on a home that is 1200sqft on the “low” side will cost on average almost $7,000.
The average cost of a new A/C (air conditioning system) in Florida is In general, the cost of a new central AC ranges from $4,500 to $8,800 for an average-sized home in Florida. But it can cost much more or less than that. The price depends on many different factors.
Of there are bathroom remodels, kitchen remodels, and floors. Let’s look at the cost of an aver bathroom remodel. Don’t forget to double that by 2 (if there are two bathrooms) The average bathroom remodel costs $10,694 Most homeowners spend between $6,085 and $15,309. You can spend as little as $3,500 to $7,000 updating the essentials in a small or medium-sized bathroom. On a large or master bath, you could spend $25,000 or more.
Is Buying a Fixer-Upper Worth It? Or Should I buy one already finished?
And how about that kitchen. HomeAdvisor puts the average kitchen remodel price in the $12,567 to $34,962 range. A small kitchen remodel can cost as little as $4,000 and a lavish remodel can cost as much as $50,000+.Jul 25, 2019
Now that you have the basic numbers consider this. If you purchased an average home in say the state of Florida you could spend an average of around $38,000 to $45,000 on a complete remodel. Oh, I forgot to add in the cost of flooring.
The average installation cost of laminate flooring ranges between $2 and $8 per square foot. This cost usually includes the cost of underlay and adhesives that may be used.National Average: $2,814Typical Range: $1,397 – $4,234Low End – High End: $500 – $7,000. Homeadvisor.com
Now that you are armed with all the facts. You can make a decision on Is Buying a fixer-upper worth it? My thoughts are this, Did you buy the hoe at a price that would allow you to factor in these costs? If so and you have the resources to complete the project, then Yes move forward.
I think that most people underestimate the cost of repairs. They see a property for $100,000 and they think that it’s a really good deal. It may be, but if the repairs are $45,000 and the appraised value is $139,000 after repairs, then you have gone backward.
Another consideration is, will you be doing the work yourself? If so then in the previous example I would say that it’s a definite possibility. In addition to these considerations, look at whether or not you will be doing the repairs all at once or overtime. If you are going to be making the repairs over time while you are living in the property, then this may be a really good opportunity.
Recently I bought a property that I moved into where the market was on the rise. However, the property did need repairs. I’m doing those repairs over time. The housing prices in my area have gone up to $25-$30 per square foot from where they were when I bought the place. In this instance, I’ll probably do okay on the property when I sell.
So Is Buying a fixer-upper worth it ? Sure it is. Just make good sound decisions on the actual property that you buy and how you are going to go about making the repairs. If you buy the property cheap enough, then have the work contracted out.
The other option is to buy a property that is already completed. A Fixer-Upper that was fixed by someone else. Many people don’t want the hassle of going through all the work and permitting that it takes to fix a property up. There are people that want to simply move it and LIVE! For this segment, I would say “Good For You”. But keep in mind that the person or persons that fixed that property are going to want to make a profit.
Yep, It’s still America, and investors want to make a return on their work. I only point this out to show you the other side of the Fixer-Upper market. With his final thought, I would ask Is Buying A Fixer-Upper Worth it? You decide. Image Streets Photography