Tips for Purchasing a Fixer-Upper
With the current real estate market trends, now might just be the perfect time to consider purchasing a fixer-upper property. Unlike other homes, fixer-upper prices don’t rely as heavily on the current market standings, so if you’ve been avoiding house hunting due to the booming market, this might be a better route. Of course, this is not to say that purchasing a fixer-upper is easy. There are several factors that come into play when shopping for a home that requires a little extra TLC.
What exactly qualifies as a fixer-upper?
It might sound self-explanatory, but a fixer-upper is a home that everyone drives by now without giving it a second glance, but once restored to beauty, everyone will want it. It’s the house with dated fixtures, old carpet and peeling paint and is a space that requires a vision to see beyond the blemishes. What it’s not? A fixer-upper is not turnkey or move-in ready.
What to consider in your next fixer-upper?
- Location: Location is a top factor with any home purchase, whether it’s new construction or a home that’s decades old. Seek out desirable neighborhoods that are up-and-coming and have homes that are generally in good condition. A good real estate agent can help you navigate and better understand specific neighborhoods. You can start your search online or house hunt the old-fashioned way by driving around neighborhoods in search of that perfect home to renovate.
- Condition: There are levels of fixer-uppers, from those that simply require new carpeting and paint to others that need new plumbing, sewer lines and electrical wiring. It helps to create a list, separating the cosmetic issues from the fundamental ones. Fundamental fixes tend to be more expensive and include things like replacing HVAC systems, reroofing and building additions to the home.
- Cost: Purchasing a true fixer-upper usually doesn’t mean just adding on the price of a few gallons of new paint. It’s important to budget for repairs. Will you do all the renovations yourself, or do you plan to hire a professional? Add up what it will cost to renovate the property, considering all the materials and labor. If you’re looking to profit from the home renovations, you should monitor your budget carefully to ensure the project doesn’t go over budget due to mistakes or delays.
- Inspections: It’s vital to get a fixer-upper inspected by a credentialed home inspector before committing to the sale to discover any problems that may blow your budget. An inspection will reveal any expensive issues that can tank your budget. Knowing exactly what you’re walking into is crucial, and a proper inspection will bring all the problems to light, so you can either begin renovations or walk away.
As you decide whether purchasing a fixer-upper sounds like a fun project, carefully consider your finances, remodeling expertise and how much work and time you want to put into the home. It’s important to partner with a realtor who is knowledgeable of the neighborhoods in your area and understands your fixer-upper goals and budget. Our agents at Points West Agency are here to guide you in the process. Give us a call at (817) 717-6036.