Many dream of owning their own home, but what happens when a seemingly great deal turns into a financial nightmare? This was the case for a family who thought they found the perfect fixer-upper house in Zvole, Czech Republic, for under three million korunas. However, upon closer inspection, it was discovered that the cost to make the home livable would be twice the purchase price.
According to a technical expert from B&K Nemovitostní Investice, the house required extensive repairs and renovations. The external plasters needed replacement, the internal applications necessary to be removed, and the engineering networks unusable. The roof was only temporarily repaired and was still leaking, and the ceilings were damaged. The cost to repair the house would be almost nine million korunas, which is nearly double the purchase price.
The property’s original owner had passed away, and the next owner had bought the house in an auction for around 600,000 korunas four years ago but had never used it. When the family was considering purchasing the home, they were only given a brief overview and not the full details of the property.
This is a common issue with fixer-upper homes, as most buyers are often unaware of the full extent of the repairs needed. It is essential to have an independent expert inspect the property before purchasing to avoid costly mistakes.
In addition to the risks associated with purchasing a fixer-upper, buyers also need to be aware of the regulations and restrictions in their area. It is essential to study the local zoning laws and plans to ensure the property can be used for its intended purpose. Failure to do so could result in legal issues down the line.
It is also essential to consider the potential resale value of the property. While fixer-upper homes can be a significant investment, ensuring that the cost of repairs and renovations will not exceed the potential resale value is essential.