If you're like most people, you dream of a move-in ready home that needs little to no work. You want to unpack your boxes and start living in the home of your dreams. However, most buyers realize that the home of their dreams just does not exist. They end up having to sacrifice something that they want, such as an extra bedroom or quartz counters, to get into an updated house that's located reasonably close to their preferred neighborhood. Many also realize that they spend a fortune trying to get as close to their dream as possible. You may also realize that an updated home is too expensive. Following are four reasons why a fixer upper will save you money.
You Will Pay More for an Updated Home
Sellers who update their kitchens and baths before selling their home can expect to earn back about 180 percent of the cost of the remodel. If they spend $100,000 updating a kitchen, you may have to pay 180,000 for it. You may end up paying for other updates as well. It's much cheaper to do the updates yourself rather than pay the former owners to do it for you.
You May End up Changing the Finishes Anyway
If you do purchase a newly redone home, you may not be in love with the finishes. Perhaps the granite counters are a little too dark or bold. If you change them out to quartz, you will pay for both the granite counters and the quartz counters. It just doesn't make sense financially. If you plan to do any remodeling at all, do not pay for a recent remodel that isn't to your liking.
Updated Homes in Desirable Neighborhoods Are Expensive
Desirable neighborhoods are expensive. What's more, highly sought after homes in desirable locations often incite bidding wars. If you must be in a certain neighborhood, you only option may be to buy the ugly house on the block and fix it up.
The Owner that Does the Updates Reaps the Reward
Remember, if you purchase a newly remodeled house, the former owner gets the payoff. If you do the remodel yourself, however, you will reap the reward. You will enjoy an instant increase in your home's value. And you will be able to get your money back from the remodel when you do decide to sell the home.
As you can see, there are several reasons why buying a fixer upper will save you money in the end. If you want to make a sound financial investment, you may want to look at some homes for sale that are a little less than perfect.