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Can a Fixer-Upper Home Really Save You Money? – GOBankingRates

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A …….

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A recent study from StorageCafe.com found that fixer-upper homes, on average, are 32% cheaper than turnkey homes nationwide. However, as with anything in real estate, prices vary dramatically depending on the city or region. For instance, you could get two turnkey homes — needing no repairs or renovations — in Austin, Texas, for the price of one fixer-upper in San Jose, California.

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However, dollar for dollar, you’ll save more buying a fixer-upper in California, the study shows. You could save ~$500,000 with a home in need of repairs in Los Angeles. You could save as much as $450,000 in San Diego and $405,000 in San Francisco by selecting a property that may need a bit of elbow grease.

But when is a fixer-upper a deal, rather than a money pit?

Evaluate the ‘Bones’

A solid structural foundation, up-to-date electrical and plumbing systems and a newer roof are all elements of the home you should consider before purchasing a fixer-upper. These updates, if needed, can be challenging and expensive. Likewise, you’ll want to make sure there are no mold issues, insect or rodent infestations, or cracks on interior walls.

“Try to avoid properties with underlying structural problems, especially foundation, plumbing, or electrical issues,” says Nate Johnson of NeighborWho, a property search site. These kinds of issues will need to be corrected, and could mean costly repair bills. They also don’t add much resale value, Johnson says.

He notes, “Good bones are often just a feeling you get when you walk through the home.”

But, there are some aspects you should look for. “Homes that have good bones tend to have spacious rooms and high ceilings, so they feel spacious rather than cramped. Large windows that allow plenty of natural light to enter the room are a plus. It’s very important to know the common construction methods and materials used in your preferred investment area before looking at properties,” he says.

Get Professional Help Before You Buy

When you’re looking at fixer-upper houses, a professional inspection can help you save time and money — and keep you from making a bad decision. “I recommend walking through the property with an experienced home inspector, preferably one that knows construction techniques for your market,” Johnson continues.

You might think the time to start getting estimates for repairs is after you’ve closed on the deal. But Chris Jones, a real estate agent for Key Realty Columbus and the owner of CMJones Homes, LLC, suggests visiting the home with a general contractor before …….

Source: https://www.gobankingrates.com/investing/real-estate/can-fixer-upper-home-really-save-you-money/

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