Before you undertake a major remodel on your newly purchased fixer-upper, consider these three reasons for why you should wait.
Why is that? Well, savvy investors are often drawn to homes that no one else wants. This is because they can customize the home to their liking and build equity all the while. Nevertheless, I advise buyers to at least live in their new home for a short period before taking on any major remodeling or costly home improvements.
To clarify, I’m not referring to repairs that make the home more livable such as lighting or plumbing fixes. Rather, I’m talking about discretionary remodeling, expansions, and other improvement projects.
“You never know—your perspective and priorities may change once you’ve settled in.”
The first reason is that living in the home may change your mind. You may have grandiose plans for improvements you’d like to make when you first buy the property. Until you’ve lived in the home, it’s difficult to know how you’ll use the home and what course of action best aligns with your priorities. Ultimately, it won’t be your initial feelings, but the day-to-day experiences you have while living in the home that will inform your decision.
You’ll also want to give yourself time to relax a bit after buying the home. You’ve earned it. After all, buying a home is a massive step in your life and a shock to the system (if not your finances). Some buyers expend so much time and effort looking for a home, it practically becomes a part-time job. Why go from one long series of decisions (buying a home) to another (renovating that home)? That’s what you’ll get when you undertake a major home overhaul. Take my advice and take a break.
Last but not least, you need time to plan! No matter how big or small, renovating a home requires careful planning. That means speaking with multiple architects, contractors, and/or designers for their expert advice on your options, which can be very time-consuming. Certain buyers would rather get renovations out of the way than live in a construction zone or pay rent and a mortgage all at once. While this makes some economic sense in the here and now, it can bring about financial headaches later.
Don’t stress yourself out with renovation-related concerns in your first six months to a year of homeownership. Use that time to “test drive” your home. You never know—your perspective and priorities may change once you’ve settled in.
If you have any questions about today’s topic or anything else related to real estate, please don’t hesitate to reach out to me. I look forward to hearing from you soon!