Why do I think buying and renovating a fixer upper is such an exciting option for buyers?
1) Equity Opportunity: Example – you buy a house in Petworth for $300,000 and do a $200,000 renovation. You make good renovation decisions that help your resale. There’s a good chance when you’re done, your property will be worth more than $500,000.
2) DC Housing Stock is Old: Many DC houses are over 70 years old – hence old wiring and plumbing. They can have lead paint and asbestos. A $200,000 – $250,000 renovation to an average size home (1600 sq feet) will usually allow you to gut and redo most plumbing, wiring, flooring, walls, and trim.
3) Build Your Dream House: What a great opportunity to make your home exactly as you want it – your style, your colors, your layout!
4) You Don’t Have to Sacrifice Character: I am completely sympathetic to the concern that renovations wipe out the souls of old homes! I love old homes. I live in an old house. But I do think new wiring, plumbing, and carefully managing lead and asbestos is important to health and safety – especially for children. And I’ve spent enough time in home supply stores to know there are many options for returning character to rehabbed homes with nice materials. Good carpentry and nice windows are half the battle!
4) Good Financing Options: The cost of the home and the renovation can be combined into single loan with one interest rate (see recent post)!
Convinced? Well stay tuned tomorrow for a post on the challenges and what it takes to get through a renovation!
If you are interested in a buying a fixer upper and the renovation process, contact me to set up an initial consult!