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Tricks for Separating Fixer Uppers from the Money Pits

Tricks for Separating Fixer Uppers from the Money Pits

Originally posted on PennyMac

Fixer-upper red flags signal repairs that can send a homeowner’s remodeling budget into a tailspin. Learn to avoid costly surprises.

So, you’ve finally found your dream house. Sure, it may need a little work—okay, a lot of work—but you’re confident it will all be worth it in the end. That is until your home renovation project starts to go down the toilet (or worse, the toilet starts falling through the floor).

The rise of home renovation television shows has made many homeowners eager to transform rough diamonds into neighborhood jewels. Couple this with the improved job market and an upswing in home values, and you have a tidal wave of homeowners willing to invest in fixer-upper dwellings.

Roughly 79% of homeowners reported spending $1,000 or more on major home improvements in 2016, and about 81% of those homeowners reported paying for the projects in cash. But that doesn’t mean that these projects always go as planned.

What many homeowners believe to be a simple “fixer-upper” can quickly turn in a “money pit,” transforming a dream project into an expensive nightmare.

“The right fixer-upper can be a great investment and a lot of fun,” says Denise Krogman, a general contractor, designer and co-owner with her husband Rob, at RDK Design and Build, LLC. “But, with every remodel there will be the unplanned, unforeseen incidentals that arise. If it needs more than a little ‘fixing up’ you could find yourself in the midst of a complete remodel or a total scrape.”

Whether you’re looking to buy a fixer-upper in the near future or are looking to remodel your current home, it’s worth paying attention to what makes a house a fixer-upper or an endless money pit.

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