Money Matters: Structural Repairs Versus Renovations

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TODAY'S eTIP(TM): Structural Repairs Versus Renovations

Work done on fixer-upper houses falls into two broad categories
- structural repairs and renovations. Structural repairs are
changes you make to the property to bring it up to local health
and safety standards. Such work can include foundation repairs,
roof replacements, new electrical and plumbing system
installations, and so on - things that cost big bucks but
add relatively little value to the property. Ideally, you can get
a credit from the home's seller to do some, if not all, of the
necessary structural repairs. The less you have to take out of
your own pocket for corrective work, the more you have to spend
on renovations.

Renovations increase a fixer-upper's value by modernizing the
home. Remodeling an old kitchen, installing a second bathroom,
and adding a garage are a few examples of major renovations that
make your home more functional, more pleasant to live in, and
more valuable when you sell it.

Cosmetic renovations (painting, carpeting, landscaping, and the
like) also add value with far less expense and aggravation. The
ideal fixer-uppers to buy are ones that look awful but simply
need cosmetic fixes to look their best.

For more information on what kind of house to buy, pick up a copy
of Home Buying For Dummies, 2nd Edition
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by Eric Tyson, MBA, and Ray Brown.

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Accumulating the Down Payment to Buy a Home
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