A “handyman special” refers to a property that needs some love in order to be livable. The term “fixer-upper” is so widely used, that is can refer to even the most run-down and damaged houses. In this article, we are discussing the pros and cons of purchasing a property that only needs a small amount of work. Learn more about what to expect in our latest post!
The idea of buying a property at a great price can be very alluring. Often times this is how people are able to buy their home well below market value! However, just like any other real estate purchase, there are a few things you need to be mindful of. Here is a list of pros and cons to help you make the right decision when buying a handyman special in NYC!
Lower Purchase Price
The biggest draw to buying a handyman special is the amount of money you can potentially save. When a house needs some work, the seller will usually be prepared to take a lower price. Depending on how much it will cost for you to renovate, buying a handyman special can be a huge opportunity to find your dream home at an affordable price.
When it comes down to it, there are fewer people in the market for homes that need work. Most people don’t want to add in the time and expense of making repairs on top of all of the other costs of moving and buying a home. You will likely have fewer people competing with you to buy the house, which in turn leads to more negotiation power and a lower overall price.
Freedom of Design
If the house needs some work to the kitchen or bath, it will give you the freedom to design things just as you wish. So not only will you save money when buying a home, but you will also get to pick out the tile and other fixtures too. It is also the perfect time to paint or replace the carpets… before any furniture is moved in. Many people buy fixer-upper properties simply for this reason: they are able to truly make the house their home.
The Neighborhood of Your Dreams
Maybe there is a neighborhood you have always wanted to live in, but it’s just a little bit outside of your current budget. You can often find a handyman special in the area allowing you to buy a home in a neighborhood you want, at a much lower price should you have chosen a move-in ready house.
You Will Spend More Than You Planned For
Well, most likely. It is smart to pad your renovation budget by at least 20%. You will inevitably encounter additional costs or find other things you want to fix along the way. Factor these “unexpected” costs into your renovation budget so you aren’t blindsided or forced to live in a house that is incomplete.
You Might Be In Over Your Head
Sure, HGTV makes it seem easy. Jim and Susan find a dilapidated mess and 30 minutes later they are living in a dream home. The reality of it is that it is rarely this easy. Being logistical hangups, construction permits, problems with deliveries and issues with contractors, you might find that fixing up a home comes with its fair share of headaches. That said, if you are prepared for these things going into the sale, you will be able to save yourself a lot of time, money and frustrations.