| Buy a Fixer Upper Home for an Investment? |
|
|
|
| Written by Georg Gules | |
| Tuesday, 28 February 2006 | |
|
A fixer-upper may not always be the best investment! Before I was a Realtor, I had considered purchasing Huntsville real estate as an investment. I began searching for bargain properties; namely those homes that could be purchased at a discount price because of their poor condition. I figured that at the right price, the home could be fixed up and sold for profit. Here’s the catch... many homes that have been poorly maintained have hidden problems. The average buyer may be completely unaware of those hidden defects. And this bargain home may turn into a money pit! In the Huntsville area of Alabama, where the humidity level is high and there is an annual rainfall of about 57 inches, moisture is one of our biggest problems. As we all know, the main staple of a home is wood. As paint jobs flake, windows lose their seals, and roofs wither with age, water can make its way through cracks into the wood. The extent of damage may not even be detectable until siding is removed, or walls are taken down. Recently, I had clients that purchased a home made with hardboard siding (one such brand is Masonite). It was clear that this home had not been well maintained. Much of this siding appeared damaged, and the home inspection revealed obvious areas of wood rot. I encouraged my buyers to have a contractor provide an estimate for siding replacement, since my clients loved the home, and absolutely wanted to make an offer. My buyers deducted the amount of repair from their offer, and the sellers accepted the offer. It wasn’t until the contractor pulled off the siding, that the extent of the damage was fully revealed. Fortunately, in this case, it only cost the buyers a few thousand dollars more, since their offer had taken into consideration siding replacement. Before buying a poorly maintained home, consider the risks. Have experts assess the cost of repairs, and have your offer reflect those costs. Know that, in general, a home that has been well maintained is more likely to have fewer problems. This could mean cash in your pocket instead of the money pit! For any Real Estate questions, please call me @ (256) 508-9811. Sheri Bulgatz Huntsville Realtor |
|
| Last Updated ( Tuesday, 28 February 2006 ) |
| < Prev |
|---|
