Brian Vanderhoff's North Fulton Real Estate Blog

Now is definitely the time to be a homebuyer. Potential new homeowners have a lot of bargaining power in the current market, and can choose from a slew of different house types, including fixer uppers and move-in ready homes. Deciding which type of home makes the most sense for you depends on your temperament, remodeling know-how and move-in time frame, experts say.
“If you know what it will cost to fix up the house then you are in a wonderful position,” says David Lupberger, the home improvement expert for ServiceMagic. “Unfortunately, people underestimate the cost of the fix up.”
The housing meltdown flooded the market with foreclosed properties and a record number of short sales, which have created bargain prices, but many of the houses require a lot of updating and renovations. At the same time, there’s also a large inventory of move-in-ready houses.
“Most fixer uppers tend to be short sales and foreclosures,” says Doug Azarian, sales associate at Kinlin Grover Real Estate. “In foreclosures and short sales situations, the sellers don’t have the money to make the mortgage payment--let alone pay for maintenance.”
Before choosing whether to go with the fixer upper or a home that requires zero to little work, real estate experts advise considering your lifestyle and temperament. If you are working long hours, raising a family or have little spare time, a move-in ready home may be more ideal. But if you have the free time and the patience to deal with the stress associated with a renovation, a fixer up could be the way to go.
“If you enjoy working on homes and putting your unique stamp on them, or have the patience and budget to hire someone, a fixer-upper might be for you,” says Angie Hicks, founder of Angie’s List. “If you’re not handy, don’t like dealing with the minutia of a home improvement project, you should buy a move-in ready home – or one that doesn’t have major repair issues.”
When going the move-in ready route it’s imperative to ensure you’re not overpaying for the house. Buyers get swept up by updated kitchens, neutral wall colors and beautiful hardwood floors, but some upgrades aren’t worth the asking price. According to Lupberger, you have to know the market and the cost per square foot in a given neighborhood. Working with a knowledgeable realtor will ensure you aren’t over paying.
According to Hicks, most buyers are looking for turnkey homes or ones with fresh paint and bathrooms and kitchens that don’t need repairs because they don’t have the money to put into fixing up a home.
According to Azarian, when trying to find the ideal fixer-upper, location is everything. “If you buy in a better location at a discount and can be patient about fix ups, it’s worth it.” He lists new floors, kitchen and bath renovations and even roof replacement as repair worth doing if the price tag is low enough.
Calculating the cost of repairs is no easy task. Lupberger suggests adding 20% to your estimated costs because there are always unwanted surprises along the way. For example, if the house has lead paint or asbestos, expect to pay 30% to 40% more on the repairs, says Lupberger.
“There’s a lot of downside if you don’t know exactly what you are doing,” says Lupberger. If you have no home improvement skills, bring along someone that does to check out the house—including the foundation, heating and cooling systems, windows and the roof.
“Be aware of cosmetic or superficial fixes that a homeowner has made to get the house through the sale,” adds Hicks. She says hiring a home inspector is important because a good one can spot cover up or cosmetic fixes that won’t last long.
A home inspector “may cost you a few hundred dollars, but it will be money well spent, especially if a costly repair is revealed,” she says.

Labels: home fuyers, home inspections, Home Remodeling, Home Sales, homes

Depending on the type of financing you choose, there should be either 2 or 3 separate inspections on the home you want to purchase. The first should be your own basic inspection (see the bottom of this page for what to look for), the second should be a professional whole-house inspection by a reputable person. Should you select a government loan (FHA or VA), the third inspection should come at the time of the appraisal, which to some degree amounts to a "mini-inspection." Do not, however, rely on this appraisal as your only inspection of the property!

We cannot emphasize enough the value and necessity of an extensive home inspection. Many home purchasers, in the desire to save the $200 to $500 that a good inspection costs, have spent enormous sums of money repairing items that any good home inspector would have pointed out. Any offer to purchase you make should be contingent upon (subject to) a whole house inspection with a satisfactory report. Do not let anyone--not the agent, not your family or friends, and especially not the seller--dissuade you from having the property thoroughly inspected! Not only will you sleep much sounder after you have moved into the house, a professional inspection can give you an escape hatch from a contract on a defective house. If the contract is written contingent on an acceptable inspection, any defects in the home must be either repaired or monetarily compensated for. If you are not satisfied, you have the option to cancel the contract.

Inspections are designed to disclose defects in the property that could materially affect its safety, livability, or resale value. They are not designed to disclose cosmetic deficiencies (for example, an interior wall that needs paint touch up). You will need to determine on your own those type of items that will need attention: don't expect a whole house inspection to reveal them to you.

Don't wait until you have placed an offer on a house before you begin the search for a home inspector. There will be a time limit in the contract designating when the inspection must be completed (typically between 7 and 14 days). If you start trying to find an inspector at that point, and cannot find an acceptable one to schedule it in that time frame, you will only have two choices: go with an inspector that is not your first choice, or run the risk of running past the deadline for the inspection (which could void any chance having the seller take care of repairs). Neither is an acceptable alternative!

Labels: Alpharetta, Canton, City of Roswell, Cumming, home inspections, Johns Creek, Woodstock