Aberdeen Neighborhood Housing Services
 
Buying to fix up and resell: Is it for you?

By Dave Murnen
and Pat Beaty

Recently we talked about how important it is to have structural and pest inspections before buying a house.

Realtors are required by law to inform a potential buyer of any ³material facts² that they know about, which includes any information that substantially adversely affects the value of the property or the price you would pay for it.

However, there could be plenty that the seller's realtor and even the homeowner simply don't know about the house.

That's why home and pest inspections are so critical to you as the buyer.

In our years of experience of overseeing repairs and remodels of homes on Grays Harbor, we've noticed a nearly universal trend - The surprises you find in the innards of a house don't tend to be happy ones.

Hardly ever are we surprised with hidden treasure in the walls or shockingly modern, professional wiring and plumbing done way above and beyond code requirements.

Instead, it is much more likely to encounter a shockingly inadequate electrical system, jerry-rigged plumbing or crawl spaces damp from rain.

One time we opened up a room that had been added on to the side of a house to find that the roof was built with 1-by-12 boards layered together. It probably had been a chicken coop at some point.

Another time instead of the walls supported by 2-by-4s, when we opened up the wall we discovered tree branches holding up the sides of a house.

Buying a home is such a huge financial investment and lifestyle change that you want to make sure you're not entering into it lightly or ill-advised. That's where a home inspection can help.

On the flip side, a good inspection can help put to rest any lingering fears that hidden problems are lurking inside the house waiting to emerge once you've spent your life's savings on it.

Even when inspections show that a home has some problems, it doesn't mean it's totally out of the question for purchase. For some, buying a "fixer upper" is the way to go.

The fixer upper option

For those experienced in home repair, a fixer upper house is worth considering.

For one thing, houses that require extensive work to make them attractive and livable residences will certainly cost less.

In addition, often buying a fixer upper will allow you to buy into a neighborhood you couldn't afford otherwise.

Some folks with the skills, time and patience also buy fixer uppers to repair and re-sell at a profit as either a full-time job or a hobby that brings satisfaction and a little extra income.

Things to consider

But no one should ever buy a fixer upper on a hope or a whim. The key thing to remember is that once you're done, your "sweat equity" (hard work) and money spent on materials should increase the worth of the house and be worth the time and money you put in.

Also, always consider the following:

  • The cost of repairs, which is often hard to estimate, can exceed the savings.

  • If you can't live in the home while work is proceeding, you have to pay the additional expense of another mortgage or rent payment.

  • If you are unable to finish the job - for whatever reason - you are stuck with an undesirable, hard-to-sell home.

The key factor with a fixer upper is the cost of the improvements.

Therefore you should always:

  • Estimate repairs generously.

  • Be realistic about how much of your time the job will require.

  • Use professionals to help you assess what's needed and to counter-balance wishful thinking.

  • Refrain from attempting repairs you have never done.

  • Get professional help, especially with plumbing, roofing and electrical work.

Next week we'll give some home maintenance tips on how to prepare yourself this fall for winter.

Dave Murnen is the construction department manager and Pat Beaty is a construction specialist at Aberdeen Neighborhood Housing Services. Do you have questions about home repair, remodeling, becoming a homeowner or a member of our contractor pool? Call 533-7828 or visit us at 710 E. Market St. in Aberdeen.

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