Is a Fixer-Upper for You?
Written By: Miller and Associates Realty On: 16th June 2015 Under: Uncategorized
For some of us, the lure of a fixer-upper is apparent: you can get a bigger house in a better neighborhood with just a little elbow grease and planning. If you are considering purchasing a fixer-upper to flip or live in, here are some tips to make sure you get the deal you are looking for!
Consider the neighborhood. The rule of thumb is to buy the worst house in the best neighborhood possible. Then be careful in where you choose to spend your money. Do not make improvements to the point of making you home the most expensive in the neighborhood: you won’t recoup your investment when you sell.
Some projects are fun – others aren’t. Spending $10,000 to remodel a kitchen and turn it into the kitchen of your dreams may be fun and exciting; spending $10,000 to fix structural damage is not. Make sure you know what you’re getting into when purchasing a fixer-upper. Bring a contactor with you when you see the house in order for them to provide an accurate and fair quote.
Don’t be seduced by the television shows where experts transform real-estate duds into dream homes, and then sell them for a hefty profit. The reality is that flipping a house profitably is a complicated and difficult process. In reality, you have to get the most bang for your buck and focus on what makes a house appealing to buyers, which can be contrary to your own desires.
Don’t bite off more than you can chew. Most people don’t want to spend every spare minute working on the house. Make a plan before you buy the house. Pinpoint your “must haves” and focus on those items. Work on one project at a time until it is completed. Hire a professional when needed.
You have to be open-minded and have the imagination and vision to see beyond the property’s current condition when purchasing a fixer-upper. Cosmetic things – outdated wallpaper, carpet, paint and old appliances – can be easily fixed with relatively low cost, but structural repairs and improvements can eat away at your budget and profits.
By following these simple tips, you can avoid the pitfalls of purchasing and renovating a fixer-upper, making your dream of home ownership a reality.
