In today’s busy market, many homebuyers have found themselves weighing options they would normally pass by. One of the more common compromises is to consider a home that needs some work.

On the plus side, fixer-uppers often come with lower prices, less competition and a lower-pressure sale on the whole. Still, they’re not without challenges.

Are you considering a fixer-upper? Here are five things to think about first.

1. You may need an alternative mortgage program.

Some lenders become concerned with providing financing for unfinished, or dilapidated homes. There’s a possibility that a Mortgage Broker may have to work harder to find the program that works best for the project. If you want to finance the home purchase and the renovations and repairs the property needs, there are several products out there available.

2. There may be appraisal and inspection issues.

If the home is in disrepair, you might face challenges with your inspection or appraisal. This is especially true if you’re using some types of loans, as properties must meet strict requirements with some programs. Again, it’s important to be upfront with your lender.

3. You should have a backup living space.

You might not want to end your lease or sell your existing home just yet. If the property needs serious repairs or renovations, you’ll probably need to live off-site until they’re complete.

4. You may want to bring a contractor along when you tour the home. 

This will help you gauge what repairs might be necessary and how much they’ll likely cost. Unless you plan on doing a lot of work yourself, it’s a good idea to know your numbers and what you’re looking to end up with once all the dust settles.

5. Be prepared for problems below the surface. 

Not all issues will be visible in a fixer-upper. There may be major problems lurking below the surface (like mold or termites, for example) that won’t crop up until later. Make sure you leave wiggle room in your budget to account for these potential surprises. 

Fixer-uppers are just one of the many options you have when buying a home. Check out all the current listings on the market in Niagara right now and see if there’s a good fit for you!  OR