Buying a Radnor fixer-upper is the dream of many potential homeowners who want to fully renovate and create a house that is all their own. It can be beneficial. All the spaces are designed after what the buyer prefers and most go for a low cost.
However, while there are upsides to buying a Radnor fixer-upper there are also many ways it can go wrong.
The Difference Between An Investment and a Money Pit
There is always the chance that a Radnor house will become a money pit. When buying a Radnor fixer-upper it is important to look at what needs to be repaired. A few simple repairs and a new coat of paint is something most buyers can handle. A complete overhaul of the walls and floors is better left to the professionals.
Some fixer-uppers are not worth fixing. It may be easier to demolish the home and start over from scratch. Always get an inspection and quotes before making a purchase to see if it is a project that can be completed without pouring too much money in.
Too Big of Problems
Some Radnor houses cannot be saved. Depending on where their problem lies or if it has gone on too long. Most know to look for problems in the foundation or the roof. But it is also important to look at the systems like heating, sewage, septic, and ventilation ducts. These are all costly repairs.
If there are any problems with mold, a closer look is needed. Some mold problems can be fixed while others are too far gone. A single area that has mold can be isolated and corrected. But if the entire floor is covered it may be time to start over new.
Determine What Renovations Are Needed
After looking at the Radnor house it can be easy to see what areas need to be renovated and updated. Pair up with a structural engineer to determine if the house is worth the work that needs to be done. Always research and obtain quotes for the projects that need to be completed. If they are coming back much higher than expected walk away from the project.
Reducing the Price
Most Radnor homeowners that are selling a fixer-upper know that their house is not in good condition. However, having a buyer come through and insulting the home will not make them happy. Always approach the situation in a way that makes it seem less demanding and more logical.
A buyer should start by telling the seller what they like about the house. Then lead into the fact the inspector or the engineer suggested these renovations to make the home livable. At that point, it would be appropriate to ask for a reduced price to complete those renovations.
Pick the Right Loan
The mortgage is important when buying a Radnor fixer-upper. Traditional loans will not work with a property that needs extensive renovations. There are loans that are specified for renovating a property. While there are many different types of loans, there is one that has done well for many buyers called the 203(k) loan.
This loan is backed by the Federal Housing Administration and that helps lenders keep low-interest rates attached to them. Plus, someone with poor credit can still get this type of loan. The only problem is that there is a limit to how much can be borrowed.
To buy a Radnor fixer-upper can be a risky process. Some properties turn into beautiful spreads with relative ease. Meanwhile, others fight tooth and nail and cost the new homeowner a lot of money. A buyer should weigh the benefits against the negatives of buying a Radnor fixer-upper. Then thoroughly inspect the home before deciding to make an offer.