5 Reasons why buying a fixer-upper may not be the best choice
If anyone has ever seen the movie called “The Money Pit” starring Tom Hanks and Shelley Long, then you know what I am talking about. To briefly summarize the story, the couple (Hanks and Long) end up buying a large estate due to its extremely low sales price. However, it becomes apparent rather quickly why the home was so inexpensive when everything starts to fall apart. The couple ends up having to throw all their savings, and then some, into fixing up the property. You know what they say, "If it sounds too good to be true, it probably is."
Fixer-upper homes have often been neglected for years, causing significant issues that are costly to repair. Unfortunately, many buyers of fixer-upper properties end up spending all their money on more fundamental repairs such as; electrical, plumbing, roofing, structural, or the foundation. Many fixer-upper homes have larger hidden issues that need to be addressed before you can start adding all the eye candy to make the home look pretty.
For 2017, some of the best returns on renovation projects are adding fiberglass attic insulation (107.7% cost recouped), replacing the entry door (90.7%), and adding stone veneer to the bottom third of the front facade of the home (89.4%).
Some of the lowest returns on renovation projects for 2017 are a major kitchen remodel (65.3% cost recouped), adding a backyard patio (54.9%), and adding a full bathroom (53.9%).
Troy Erickson has been blogging about Arizona real estate since 2006. He is a residential real estate agent who specializes in helping home buyers, sellers, and investors in Chandler and the East Valley. He has been recognized for his local market expertise, and frequently volunteers within his community.