Shokoofeh Nowbakht

Remodel or Remodeled?
October 22, 2008 ·  

Would you buy cheaper and remodel or buy remodeled? Does it make sense for the first time home buyers to try to save money by buying a property that needs some TLC and remodel it themselves? How much TLC is reasonable? Just some thoughts and concerns! Do you have to be a good handyman to buy a fixer upper? Why do we realtors use “Contractors’ Special” comment on MLS? Should a non-contractor buy a fixer upper? Ok, what are your thoughts?

 

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Comments

3 Responses to “Remodel or Remodeled?”

  1. Jean Joh on October 22nd, 2008 11:45 am

    Good question. I have many clients who start out thinking that they want an REO or a fixer-upper, because of the lower prices that they’ve heard about. I guess the most impt thing is that they know what they’re getting into. In general, though, unless a client is a contractor or has a contractor friend/relative who can help them, I would hesitate to recommend a “contractor’s special” to a first-time home buyer. Buying a home for the first time already has enough excitement on its own, even if the home is in “move-in” condition.

  2. Nicole on October 22nd, 2008 12:20 pm

    Great blog… I think it depends on how much “tlc” is needed. A first time home buyer should look at homes that need some sweat equity, but not if its so much they are stuck in a money pit they can’t afford to fix.

  3. Lee Ginsburg on October 27th, 2008 11:14 am

    I think the first time buyer or any other buyer is better off buying a remodelled home in today’s market. The main reason is leverage. The bank is loaning you money for the remodel. You are putting down less of your own money. To do the remodelling yourself you have to pay cash out of pocket with the hope you might be able to refi later and get your money out. Second, In today’s market it appears you could buy a remodelled home for less than the true costs of remodelling. Third, Remodelling is not that easy. Maybe you can’t even live in the home while work is being done, even if you can it disrupts your life style, dealing with contractors and the building departments is never as easy as it looks.

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