What to Consider Before Buying a "Fixer-Upper"

 Posted on May 08, 2024 in Residential Real Estate

Chicagoland is filled with historic homes. Many of these historic homes are beautifully built and crafted with quality materials. However, the interiors of these homes often need work to bring them up to modern standards before they are move-in ready. Investing in and restoring a historic home can be deeply rewarding but can also be frustrating and expensive. Before you commit to purchasing a home that requires significant work, ensure that you have an accurate understanding of what actually needs to be done, how long it will take, and what the cost will be. A Cook County, IL real estate attorney can help you plan your purchase.

5 Factors to Account for When Buying a Home That Needs Work 

A few of the many factors to consider before purchasing a fixer-upper include:

• Is the chain of title clear? The older the home, the more likely it is that there is an unresolved claim to ownership somewhere in its history. You will need an attorney to perform a thorough title search to ensure that the house comes with clear title. 
• Is there a time limit for moving in? Repairs often take longer than your contractor originally estimated. If you need to move in by a certain date because you have a job starting in the area or because you have a buyer lined up for your current home, you would want to plan for any needed renovations to be done well in advance of your move-in date in case the work takes longer than anticipated. 
• Will the seller negotiate? If the repairs needed are extensive, this may give your lawyer room to negotiate a lower price with the seller. 
• Can you manage an overbudget project? The more extensive the work needed, the more likely it will run over budget. A contractor may begin work and then discover an issue it could not have known about before starting the project, causing the work to become more costly than anticipated. You may have a problem if the estimate is very close to your maximum budget and the actual costs run over. 
• Can you move in before renovations are completed? Some renovations absolutely need to be completed before you can move in. Anything affecting health and safety or sanitation must be done before moving day. Other renovations can be carried out while you are living there. For example, mold must be remediated, and the plumbing must be in working order before you can move in. However, you could make more minor cosmetic repairs, like repainting or covering a scratched hardwood floor after moving in. 

Contact a Hyde Park, IL Real Estate Attorney

The Sherrod Law Firm, Ltd. will work to ensure that the home you are buying is well-suited to the needs of your family. Our experienced Cook County, IL real estate lawyers strive to uncover all possible issues before you commit to a purchase. Contact us at 312-321-6910 for a complimentary consultation.