Perhaps because home prices are high in many areas, or because many cannot afford the home of their dreams, we see people looking for less than stellar homes and properties, which are often referred to as, arrangement – top, or Handyman Specials. After more than 15 years as a licensed real estate seller in New York State, I have come to the conclusion that it is necessary to proceed wisely before pursuing this course of action, because there are several important elements to consider, before proceeding, ahead. With that in mind, this article will briefly attempt to consider, examine, review, and discuss 7 factors to consider before taking this path.
1. Determine condition, especially weaknesses, concerns, etc: The first thing you should do is carefully examine (and, if you’re not sure, enlist the services of a home inspection expert), the so-called house bones! If the heart of the house is weak, stay away. Remember, don’t be drawn in simply because you can buy a home, for a low price, before you’ve examined what it takes to get it to the level you’re comfortable with. How much can you do yourself and what might you need to hire others to accomplish? What are the zoning, building and other codes in the specific region? Please consider factors, such as drawbacks, etc., before making a final decision! Does it make sense for you to fix a Handyman’s Special?
two. Is necessary/necessary work, cosmetic, major/structural, or in between: Appearances can sometimes deceive you, because whether this makes sense often depends on whether home improvements are cosmetic or major, structural issues! That’s why it’s essential to hire a professional, licensed home inspector or home engineer before proceeding!
3. How handy are you?: Those, in the trade, or, with friends, willing and able to help, etc., can often take advantage of these potential opportunities, much more so than those, who will have to hire trades – people, to do everything!
Four. Emergency: How fast do you have to move into the house? Can the necessary work be done safely while someone lives there? How long, could it take, to do it? What areas are the most pressing and urgent, and should you create an action plan to work on strategically, based on priorities?
5. Total cost to restore: Consider the worst case scenario and determine the total cost to restore, as you wish! Add this to the cost of purchasing the property and home to find out your total purchase cost and whether it makes sense to you.
6. Learn about the local real estate market: Where is the house? What price are competing houses in the area selling for in the real estate market? Does it make sense to spend less on a Handyman’s Special and upgrade it, or would you be better served by buying a house, with perhaps better bones?
7. Football – print: Know the zoning rules in the area! Many places have specific rules, in terms of the (maximum) percentage of a home’s interior, square footage, and property lot size!
Since, for most, the value of their home often represents their single largest financial asset, doesn’t it make sense to proceed wisely? Will you work, in your own interest?
