(May 2006 – that’s me removing old patio to prepare for above grade deck.)
It’s Summer.
Lot of projects are underway for many homeowners. For those considering homeownership, perhaps one of the strategies for buying a home is to consider a fixer.
Sweat equity is one way to produce equity the old fashioned way. It requires time, hard work, a creative mind, tools, money and some know how. If you end up doing a good portion of the work yourself vs. hiring contractors you will save a lot of money and gain equity in the value of your home.
Consider buying a fixer.
I’ve never purchased real estate other than a fixer. Initially it was by necessity. I had to buy piece of junk in Ballard or we were going to continue to rent. After our second fixer in Edmonds, we purhased the fixer we currently reside in out in Snohomish and it’s been a very long haul. I’m still working on the house, but have saved over $100,000 in bona fide labor costs by doing it ourselves. Two years running has taken a toll. To be brutally honest, you can get burned out. Further, I’m cheap. I hate to spend money. I still drive a 12 yr old minivan. I also have three very easy ways to destroy things: kids.
My introduction to housing was by accident. The start was participating in a renovation of a home my college roommate purchased on Queen Anne Hill in Seattle back in 1989. At the time I really didn’t know how he bought it. As a punk kid fresh out of college thinking I knew-it-all, I admit I was envious of his good fortune. The market was hot. Fast forward to today with my experience, I now know how he did it and didn’t do it, but that will be saved for another posting. I had no experience in home improvement whatsoever. Since then I’ve gained skills little by little until having a well rounded background in most everything. I’m still weak in framing, but then again I don’t build homes for a living.
I won in Las Vegas. (this really deserves it’s own post)
Do you have friends who always say this, but they don’t tell you the amount they lost? Real Estate can be the same. It’s so funny, because I have a friend who’s wife always spills the beans about how much they really made (code for lost) weeks after they come back from Vegas. And lose they did. We’ll, I’ve made many mistakes in fixing a home that have cost me plenty. No bones about it. For example, see the photo below.
One of the best screw up’s on record, at least that I’ll admit to on a public blog is the following: every square inch of our home’s interior walls (except for baths) were covered in dark paneling. No probelm I thought. Just peel them off, touch up the drywall, texture and paint. Nope didn’t happen. The previous owner glued them all down with stuff they must use on the Space Shuttle. Destroyed the drywall taking the paneling off. Retail cost: $8500 error.
For some people, they don’t mind sore muscles, running all over town for supplies, and being constantly filthy—it’s starting to get to me now, never mind that I’m not 25 yrs old anymore. The satisfaction of making a house your home is clearly a highlight. It’s not for everybody and it does cost hard earned money. If you can’t afford to buy a home that is “move-in-ready” or new construction, consider buying a home that needs improvement. You can save on the purchase price and build equity the old fashioned way while enjoying the satisfaction of being a do-it-yourselfer.
How about you? Would you consider a fixer if you were a first time buyer? I did and it has paid dividends every time.
Just a liiiiittttle too far down my driveway. Plus a few choice words and $800 pain.
Cheers,
S-Crow