There are three kinds of homes that are available to a buyer: move-in condition, good condition, and the fixer-upper. Move-in condition is about as close to perfection as possible and will need little renovation and decorating. Good condition usually means the structure of the house is fine and the appliances work well. The fixer-upper is anywhere from a house that needs a few minor repairs to one that needs to be completely renovated from wall to wall and ceiling to floor.
Some of the advantages to buying a home that needs renovation, are often being able to buy a larger home in a better neighborhood, buying a two-family home and renting out part of it for extra cash, and to get a maximum investment out of your home.
However, there are also disadvantages to buying such a home. For instance, the estimated cost of the renovation almost always is roughly twenty-five percent more and the estimated time is usually only half of how long the renovation will actually take. Also, the mess and chaos of such a project has been the end of many relationships and is always a lot to deal with.
Another problem that can be encountered when dealing with renovated homes is it is always possible to over improve a home. For example, a home worth five hundred thousand dollars after being renovated, will not sell for that in a one hundred thousand dollar neighborhood; therefore it is going to sell for much less than that which it is worth.
Before renovating a home, always look at what other renovated homes in the same neighborhood are selling for. Also, always consider the amount of money that will be able to go towards a house, and if renovating will cut funds close, buying a new home could be cheaper (and not to mention easier) in the long run.
Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.