Fixer Uppers - Do the Work Yourself Or Buy After Renovation?
Many consider a fixer-upper a fun DIY project, like restoring an old car or learning to cook, the kind of activity that lets you put your personal stamp on a property and adds to the pride that comes with home ownership. But these projects often end up taking more time and money than planned.
If you believe what you see on TV, buying a home and performing all of the repairs and renovations yourself is a walk in the park. Many consider a fixer-upper a fun DIY project, like restoring an old car or learning to cook, the kind of activity that lets you put your personal stamp on a property and adds to the pride that comes with home ownership. Add in the money you could save by buying a house that needs work and you've got a winning combination, right? Right?
The honest answer to that is...it depends.
What is the Condition of the Home?
It depends on what kind of condition the home is in, and what repairs need to happen before it can be considered fully livable. Remember, a home that needs its wiring redone, or which has only a half-finished second floor, or whose plumbing is suspect may be a long way from "ready to move in."
You may have to factor in not only the added cost of hiring a contractor (or if you really are doing this by yourself, of all tools and materials) but also the inconvenience of having to go elsewhere when parts of the home cannot be accessed. If you're new to the area you're moving into, this may mean shelling out money to stay in a nearby hotel. If your kitchen is undergoing repairs, you may have to eat out for however long the process takes. Assuming you decide to stay in the home while it's being worked on, are you prepared to live in a construction site?
What About Error?
Another potential downside to going it alone is the possibility of error.
It goes without saying that mistakes can happen when you attempt a project you aren't qualified to tackle, but even contractors can make mistakes. What guarantee do you have that the so-called specialist you hire will complete the task to your satisfaction? Even if he/she fails miserably, you will have no choice but to cover the labor they put in and then pay even more for yet another so-called professional to hopefully right the ship.
Recently Renovated Homes May be the Way to Go
Buying a home that has already been fully restored eliminates the risk of a botched job. Reliable renovators have a tried-and-true system in place and a network of reliable contractors.
On the other hand, unreliable renovators (you may know them as house flippers) have been known to buy fixer uppers hoping to eventually sell them for a massive profit. They try to cover their costs and make some money, but they often don't realize that performing renovations on a home does not entitle them to add their building costs onto the final selling price.
Weigh Your Choices
Fixer uppers are a lot of work, so you should weigh the decision carefully. They can be practical and cost-saving, but they also require a lot of time, effort, and money. Before you decide to take matters into your own hands, make sure you know what you're getting yourself into.
source: http://www.goarticles.com/cgi-bin/showa.cgi?C=3010670