Are you planning to move to NYC and you still haven’t decided what type of property to choose? Possibilities are endless. You can choose among a fixer-upper, a move-in ready, and a new-construction home. All these types of properties have their pros and cons. This time, we’re bringing you the most important things to have in mind if you opt for buying a fixer-upper in NYC. When you need professional and top-quality moving service, contact moving companies Queens. We can move you to your new home effortlessly.
If you want to buy a house on a budget, a fixer-upper can definitely be your choice. Since it is not turnkey, which means you can’t move there immediately, it can be hard to determine whether a fixer-upper is for you or not. The renovating process can be pricey and take a lot of time. In some cases, it can last for months, even years.
Pros and cons of buying a fixer-upper in NYC
- Finding a home that perfectly suits you isn’t easy at all, but with a fixer-upper, you will have more creative control when designing your home the way you want
- It’s noticeably cheaper to purchase a fixer-upper than a turnkey
- You need less money in the first place
- You’ll have to pay less in property taxes since
- By remodeling, you’re greatly increasing your home’s value
- The remodeling process can be very time consuming and cause you much stress
- It’s not that easy to determine the exact cost of remodeling and renovation, so it can lead to unexpected costs that can shock you. If not properly planned, remodeling can cost you a fortune
- You have to receive building permission if you intend to make structural changes
Assess the upper-fixer conditions
Realizing the real home conditions is crucial when buying an upper-fixer. It’s easy to fall in love with the home’s details like walls colors, kitchen details, and other types of home finishes. We can’t deny that it’s not important, but you should focus on more important things. Pay attention to the roof conditions, HVAC system. Don’t be infatuated by some cosmetic details, put them aside. Remember to conduct a thorough assessment of the whole building. It’s always a good idea to seek help from home inspections. They can provide you with detailed info about structural conditions and the conditions of plumbing and electrical systems.
If you skip evaluating a home’s conditions, there could be a lot of hidden costs thrown at you once you start remodeling. If you buy a home with an electrical system in a poor condition, the electrical updates you will need to make can be pricey and take too long. Every unexpected update will put off your moving in and can be very frustrating. So, to be sure you’re buying the right upper-fixer, don’t hesitate to contact home inspection.
When buying a fixer-upper in NYC, don’t forget to examine the home for mold in the unit. If there’s some, you could have many problems. Mold can lower the quality of life in your home. It can lead to several health issues like runny nose and congestion, lung irritation, sneezing coughing. Getting rid of home mold can be difficult as it tends to keep coming back over and over.
Get informed about building restrictions on remodeling
Okay, you found an upper-fixer that is in a good condition. Now you have to check if a renovation is allowed at all. Different types of properties require different approvals by the building’s board. Remember to check the building’s renovation policies to be sure your vision of remodeling is feasible at all. Don’t forget to ask what’s permitted and what’s not.
Buying a condo or a co-op
If you’re intending to buy a condo or a co-op, you should know that there is a different set of rules and regulations for both of them. These regulations can vary from building to building. It’s very important to ask the following:
- what time of the day remodeling activities can occur
- the wet and dry rules that apply
- what are the insurance requirements you need to meet
Buying a single-family house or townhouse
On the contrary, if you opt for a single-family house or townhouse, you will probably have endless freedom in the renovation. Your renovation plans won’t need to be approved by the building board. But, if you plan to make major layout changes, you will need approval from the Department of Buildings.
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Plan your budget
Besides the actual property price, you’ll have additional costs since an upper-fixer needs additional work to move in. These costs vary greatly and are determined by the materials you’re planning to use for high-end and custom finishes. Furthermore, if an electrical or plumbing system needs updates, it could increase the costs significantly. So that’s why it’s crucial to evaluate the real home’s conditions. By doing so, you can lower your costs.
Our suggestion is to find an experienced contractor and architect for further consultation about remodeling. It’s good to pick professionals who have previous experience with similar projects. Don’t forget to ask for reviews from previous clients. When you cooperate with professionals, they can help you lower your total renovation cost. A professional architect can help you choose materials with the best price-quality ratio.
Just to get a better picture of how much money you’ll need to pay for remodeling, it costs approximately $100 to $200 per square foot to do the full-home remodeling. Basic renovation of a bathroom can cost you $15,000, while kitchens can cost $25,000.
Don’t forget to add the moving costs to the budget. But, with budget-friendly prices and reliable moving services Queens NY, you don’t have to worry that you’ll fall short of money.
How to secure financing for a fixer-upper
Commonly, people opt for purchasing an upper-fixer to renovate, instead of new higher-priced, move-in-ready homes. This can be due to the constant rise in home prices in recent years. To cover your financial costs, you can get an upper-fixer loan when buying a fixer-upper in NYC. You have multiple choices for financing a fixer-upper. You can choose between government-backed mortgage programs or conventional loans. Furthermore, you can choose from one of these available loans:
- Fannie Mae HomeStyle renovation loan
- Freddie Mac CHOICERenovation loan
- FHA 203(k) loan
- VA renovation loan
Work on your mindset
You have to develop a positive attitude. Since renovation could take longer than you expect, you have to prepare yourself for unexpected situations. We admit that the renovation process isn’t easy at all, but with the professionals around you, it will be a lot easier. Keep in mind that you need to be flexible. If you don’t find what you want in one area, try not to be downhearted. Move your search geographically, and you’ll surely find something suitable for you. Go easy with planning and with deadlines. We all know how frustrating it is when a deadline passes and you didn’t finish what you had planned. Help from a friend or relative always means a lot, but don’t let them do tasks instead of professionals. Friends and family can be your mental support.