Should You Invest in a Phoenix Home That Needs Renovations?

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Today, I’ll answer a question I’m often asked: “Should I buy a home that needs a lot of repairs?”

Well, first off, many people think that regardless of the necessary repairs, a property is a great deal. However, that might not be the case. Renovation expenses might contradict the initial price of the home and make you pay even more.

Ask about what’s wrong with the property. Investigate the estimated cost to address and fix all of those repairs. Figure out how much it costs to bring that property to the level of a comparable home in the neighborhood. Once you have that list of repairs and prices, we can compare it to the overall price of the home.

Secondly, if the price of the home alongside the repair expenses is worth the home’s true value, you didn’t end up with a good deal or advantage. If you’re buying a home with mass repairs, you’ll put in sweat equity to gain equity from the effort you’re putting in to fix it. Another advantage includes customizing the home your way, such as floors and wall colors, so it looks the way you prefer it.

Purchasing a property with repairs may or may not be a good deal, but there’s more to consider beyond the surface. If you’re thinking about buying or selling a home in the surrounding Phoenix area, give me a call or send me an email today!