For some Buyers, the slightest hint of ‘fixer upper’ is enough to cause hives. For others, it sounds the same as sweat equity or the ‘Ka-ching’ of dollars. Regardless of where you fall on that scale, you might benefit from exploring exactly what type of fixer upper fits within your comfort zone.
- Paint and Move – The orange kitchen paint isn’t ideal but the granite countertops are spectacular. This would be a great example of the easiest of home changes. Just paint and move right in.
- Cosmetic Makeover – Not in love with the 70’s wallpaper? Hating the avocado toilet or shiny brass fixtures? These are the ‘in your face’ but low cost fixes that we see most frequently. If you or someone you know if handy, this type of fixer upper offers the easiest opportunity for quick equity. These homes tend to show terribly and bringing it into the current century can make all of the difference in overall value.
- Handy Man Special – Too many DIY Don’ts in evidence? Basic repairs needed? A non-supporting wall where it just isn’t needed? Fixes that might be just beyond your ability level can still offer a great upside if you have a handyman that you trust. This work often counts more against the purchase price than it costs to remedy and can provide a very nice equity boost if you have the patience to fight through the work being done.
- Systems Failure – Outdated furnace? Rust ring on your hot water heater? These are the type of items that can add up quickly but are usually not in immediate need of investment. If your inspector flags household systems for age issues it is a good idea to budget for their replacement and tackle them as you have time. It can also be a great situation for a Home Warranty to cover their replacement if needed within a year after Closing.
- Structural Weakness – Foundation cracks, rot from plumbing or roofing issues, serious electrical wiring issues, ‘popping the top (adding a floor) or house expansions are the type of fixes that most Buyers are simply unable to tackle. This ‘fixer upper’ usually requires a qualified contractor and a pretty healthy budget. They also require much more due diligence to ensure that the big investment will pay for itself in equity at minimum.
- Scraper – What do you get when you have a large, amazing lot in a prime location with a house that will never shine again no matter how much elbow grease? What we call a ‘scraper’ – meaning the bulldozer should scrape the house off the land and build something else. These are rare but if you have a contractors background or are very ambitious, when these do come up it can be a good investment if handled well.
What level of ‘fixer upper’ are you comfortable tackling?