Buying a Home With Minor Repairs Needed

Buying a Home With Minor Repairs Needed
  • Opening Intro -

    The current home market gives home buyers a great opportunity to purchase a home at a reduced cost.

    Those costs can be dropped further if you're willing to buy a home needing minor repairs.

-------------------------------------

Take on major repairs yourself and you could find yourself with a money pit, a time-consuming project that might bust your budget. With minor repairs needed, you can negotiate a lower price for the home, saving you money in the long run.

1. Hire a home inspector — Before you make an offer on a home, hire a qualified home inspector to review the entire house and property. Typically, you’ll pay $400 to $500 for an expert’s advice, receiving detailed information about the condition of the roof, the strength of the foundation, and other home features. You may need to show a copy of this report to the seller.

2. Review the report and estimate repairs — If the home is in excellent condition, then repairs are not needed. If the home has been trashed, you’re looking at a major renovation. We’re talking about making minor repairs here, so let’s look at those options. First, estimate the cost of having these repairs made. If the seller is not willing to make repairs, then you’ll need to negotiate a lower price. Second, base your offer for the home on the repairs needed. Subtract those costs from your standard offer to arrive at reasoned bid. Present this offer to the buyer through your real estate agent, if any.

3. Negotiate your offer –– If the buyer refuses your offer, you can counter with a new offer and show your real estate agent what it would cost to make these repairs yourself. The seller may agree to make repairs, but won’t budge on price. You’ll either accept his offer or move on. If the seller agrees to a lower price, then factor in these repairs as part of your homeownership costs. Still, you’ll end up financing a home valued less to cover needed minor repairs.

4. Settle on a price — If your offer is more than 5 percent lower than what the homeowner is asking for your home, then you’ll need to back yourself up with the appropriate information, such as a copy of the inspection report, outlining the repairs to be made and the cost of making these repairs. A seller will be more likely to accept your price if you can justify the costs.

Do-It-Yourself Repairs

You can save additional money by handling minor repairs yourself. You can also ask friends for help, to tackle dry wall, patio repair and bathroom tile projects together.

-------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------

directory photos forms guide

Helpful article? Leave us a quick comment below.
And please share this article within your social networks.

facebook google+ pinterest
Categories: Home Interior

About Author

Matthew C. Keegan

Matt Keegan is a freelance writer and editor as well as publisher of "Auto Trends Magazine", an online publication. Matt covers campus, consumer, business and financial topics on various websites and weblogs, and has been published in the "Houston Chronicle", "Sam's Club Magazine" and "Wisconsin Golfer".