Should Your First Home be a Fixer-Upper?

You also need time to do the research prior to asking for bids from contractors if you’re recruiting professional help. That way, you’ll have a better idea of what things should cost when calling a contractor and which contractor is the best person in your area to use. “Realtors get involved in fixing houses they’re trying to sell,” says Brock, so turn to your real estate agent first. Get at least three estimates for any work you’ll need done and ask for references. You can also ask your neighbors who they used and what they thought of the work. Do You Have the Money? If you pooled every last penny for that down payment, you’re not going to have much left over for home repairs, so you might be better off buying a house that is livable as is. But if you have money set aside for repairs or you plan on taking out a loan, make sure you get an accurate estimate and then add another 20 percent on top of that. “If you are doing everything with borrowed money with no margin for error, think again,” says Brock. “There will be extra expenses no matter how carefully you plan.” Be forewarned: Renovating can put stress on your relationship. Don’t forget to factor in those extras that pop up when you’re living in a disrupted space: child care, dog care, takeout and days missed from work because you must be at home when the contractor is there. Expect some things to go awry and that at some point you’ll probably need an expert called in when you’re budgeting for your fixer-upper. How Solid is Your Relationship? Buying a house is a stressful experience. Throwing a renovation on top of that, especially for a lot of first time homebuyers, isn’t always ideal. “A lot of people move into houses soon after they’ve entered a long-term relationship,” says Bray. “That can be tough on a relationship if you’re trying to figure out these difficult things that have big implications for your finances and how you want to spend your life.” If you’re single and still want to fix up an older home, make sure you have a network of helpers and never do the work by yourself. “The other person's perspective is invaluable in figuring the best way to attack and complete a project, and by using a checks and balances system you ensure you're not skipping steps, using the right material, and just helping to get the job done,” says Jennifer Musselman, author of Own It! The Ups and Downs of Homebuying for Women Who Go It Alone. “If you're fortunate to have handy family members or friends, definitely enlist their help. Just make sure to enlist the help of people you trust and know their level of experience and expertise in what you're asking them to do. Nothing could start a family feud faster than getting free help and someone accidentally breaks something or does something wrong,” she adds. The one thing you want to make sure you don’t do—whether you’re single or not—is to watch the myriad of renovations shows on television now and think that dramatic and quick transformation will be your experience. Remember, that’s not really reality TV and you might end up a typical disaster episode. But if you plan ahead with your time, money and resources, your handyman’s special could be more than worth it.

...Continued - Page 2 of 2 ( 1 2 )
< Previous Page