If you are interested in buying a home but want to save money, one option is to go with a fixer upper. Although this type of home would need work, chances are you could find a home that could be lived in at the same time renovations are occurring. Just keep in mind that a fixer upper is not for everyone. Therefore, you want to consider a number of things first to make sure this type of purchase is a good option for you.
With a fixer upper, the point is to purchase a lower priced home that is in some degree of disrepair. Then, the new owner would spend time and money putting the house in good working and aesthetics condition. In other words, you spend little of your money on the purchase price and more on the fixing up costs.
To purchase a fixer upper, you need to make sure that you do not mind putting in long hours of hard work and sweat but remember that the results can be amazing. With a fixer upper, you will be painting, scraping, cleaning, replacing baseboards, putting in new floors and carpets, replacing light fixtures, and the list goes on. Yes, it is a tremendous amount of work but exciting at the same time.
Although you can expect a lot of hard work and time going into a fixer upper home, most people who have purchased a home this way will tell you that the overall experience was well worth it. Just the savings alone make buying a fixer upper a great option. For instance, you could easily purchase a $150,000 home in a decent neighborhood for $75,000 or less.
When shopping around for the right fixer upper, you can check out the local paper, auctions, and even foreclosures through the courthouse. Now, while some fixer uppers simply need a good cleaning, some TLC, and minor repairs, some are serious renovations. Therefore, we suggest before you sock your money into this type of home, you should know what to look for or you should take someone with you who can check the plumbing, electrical system, foundation, roof, and other major and expensive projects.
The other thing to remember is that buying a fixer upper will save you money upfront but it is also a complex financial investment. This means securing the loan through a bank or mortgage lending institution for the purchase but then also having funds on hand, coming in, or financed for the repairs needing to be done. Again, a fixer upper purchase is not for everyone but if you are looking to buy and find yourself on a tight budget, you might consider it.