Are you thinking of buying a fixer upper and renovating it into your dream home or as a resale for financial gain. Although, this adventure can be very exciting and profitable, it is important you know what you’re getting yourself into. Chances are when purchasing a fixer-upper the competition is slim but it can be a double edge sword. You can either find yourself in a money pit or sitting on top of a gold mine. Before taking on a fixer-upper, it’s important to know what to look for before you set out on your search.
What to consider
Let’s start with the qualities you should look for in a home. Location and lot size is key, no matter how great of a renovation you do, a bad location or lot will not necessarily increase you homes value. Research the neighborhood, check average home prices and recently sold homes. Look for amenities that are in the area like shopping centers, parks and schools. Buying the worst house on the block in a great neighborhood, can bring a great return. Ask your real estate agent to show you fixer-uppers in desirable areas with a healthy market growth.
So you found a home
What is the condition of the house, does it have “good bones’. You want to look for a good layout that flows naturally. While it is possible to knock down walls and rearrange floor plans, it can be expensive. Watch out for structural problems, like foundation issues, outdated electrical wiring, plumbing issues, mold or possibly a roof that needs replacing. Hire a qualified home inspector to perform a thorough inspection so you know exactly what you are getting into before you buy.
Make a plan
Work with your real estate agent to review the findings on the home inspection. Together you can get started with a rough estimate of renovation cost. A reputable contractor can assist in the process of budgeting for minor renovations and major renovations. Plan for a least one unanticipated renovation cost.`
Whether this is your 1st home or 2nd, purchasing a home is a big decision, while at times it might seem overwhelming this can be a great way to get good value for your money. Do your research, call a team you trust, call us today! +1 (858) 731.8080