Everyone wants a great deal on a real estate purchase. Buying a home is the perfect means for people to build both equity and net worth. If a house is a "fixer upper," a buyer with basic home improvement skills may be able to restore the property to pristine shape in no time. Such a buyer may even look at foreclosed properties or homes available through an estate sale. Acquiring a tremendous discount might be possible and, potentially, so would attaining a huge boost in net worth after making repairs. Unfortunately, highly discounted homes may be in so much need of repair the property could outright fail inspection. There are still ways a buyer can salvage the great sale even if an inspection flops.
Home Repair Concerns
Basic home improvement work such as remodeling a bathroom or patching up minor damage to windows won't usually be a roadblock to buying a property. Major issues such a mold infestations or the necessity to completely replace the roof, however, mean equally major cost outlays. Buyers looking for a deal may become very skittish at huge outlays. Such concerns make sense. Attempting to address the concerns -- and the repairs -- could still lead to getting a great deal. Here are a two things to consider when looking at an "inspection challenged" property:
- Look for Pros in Advance
Anyone wishing to buy homes sold at 40% or more below market value really should expect the properties to require major work. Lining professionals up "on call" to fix the property may be worth doing. While the professionals must see a specific property in order to come up with a specific price, finding reliable and affordable repair professionals in advance could cut down on time and money.
- Ask to Split Repair Costs
Splitting the repair costs means the seller has to drop the price. With $3,000 in major repairs on the table, the seller now must cut $1,500. Whether he/she is going to go for such a deal remains to be seen. Asking, as the saying goes, won't hurt. The seller might be in a rush to move the property for any number of reasons. Being accepting of repair-oriented price cuts might assist in moving that property
Getting the Deal
If the costs associated with restoring the property still lead to getting a great deal, making repairs should be looked at as a contribution to the investment. Getting a deal worth $40,000 in savings vs. $50,000 in savings is still a deal.