You’re buying a house? Congrats!
By this point you’ve got a property picked out and are receiving unsolicited moving advice from friends and family.
In The United States, the median sales price of a new home cost $321,400 in March of 2020. With residential sales at such a steep price, it can be challenging to decide to purchase a new home.
But the real question is, should I buy a fixer upper?
For prospective homeowners looking for the best, here is the ultimate guide for buying a fixer upper house.
Read on to learn more.
What Is a Fixer Upper House?
A fixer upper is a house in need of reconstruction, remodeling, and refurbishment. The property is typically offered at a low price but may require costly repairs.
It’s important to be mindful in choosing a real estate agent to make sure you get a bang for your buck. Remember to do a proper inspection fo the property and estimate renovation costs before signing the line.
What to Look for in a Fixer Upper
It’s important to know what to look for in a fixer upper. Keep your eyes peeled for easily correctable repairs such as worn carpets, peeling paint, and dated fixtures. Expect to refinish floors, replace windows and doors, and update cabinetry.
Always expect setbacks to your timeline and unexpected additions to your budget. Avoid setting a conservative budget. Be prepared to invest a lot of time, patience, and energy.
Look for the right price that will allow you to realize your renovation goals under your ideal budget.
Remember to Do the Math
Determine the amount of money you’re willing to spend on the fixer upper house. Next, determine what you expect to pay for the fixer upper. Add the costs to renovate the home based on the condition of the house.
Remember to consider labor and materials in the estimate. Subtract that value from the expected value of the home after the renovation. Look to other real estate prices in the neighborhood for comparisons.
Add an additional five to ten percent for unpredicted costs and problems you may run into. Your offer should be the final value at which you arrive.
If you’re considering to flip the fixer upper, remember to pick projects that pay. Find fixer uppers that largely just require cosmetic improvements. These projects typically cost much less money than what they return at market value.
Consider adding features such as:
• Window shutters
Check out options for updated kitchens and bathrooms as well to attain a higher profit.
Evaluate the Condition of the Home
When considering how to buy a fixer upper, remember to evaluate the condition of the home. If the house has good bones, you should consider buying the fixer upper. Do your research ahead of time to avoid surprises.
Don’t forget to separate fundamental problems from cosmetic ones.
Check to see if the fixer upper house will require more expensive fixes like a new HVAC system, shored up foundations, new plumbing, and reroofing.
Ask the seller to provide evidence to the age and condition of the room and obtain a roof certification on seller’s dollar. Inquire to see if the seller will pay for a home warranty.
Don’t forget about pest inspections. Make sure your fixer upper purchase is contingent on your approval on the inspection.
Have the sewer line and septic tanks checked too. Check out the engineering reports and look for landfills nearby, resale hazards, and contamination reports.
Consider the cosmetic projects you want to undertake during your evaluation. Easy fixes include:
• Laying tile or carpet
• Installing ceiling fans
• Replacing baseboards
• Adding a deck
• Painting the exterior
Try to look past the colors in the house as well as the flooring and furniture.
Consider the Location and Layout
It’s not always worth buying a fixer upper. It’s important to consider both the location and the layout of the home. Avoid purchasing a fixer upper house located in places such as a:
• Busy intersection
• Next to a school
• Near a landfill
Instead, try to find a more desirable location like in an up-and-coming neighborhood. Look at the surrounding homes and note how they are maintained. Consider talking to some of the neighbors for additional information.
Choose a fixer upper house that has an open concept. Look for a layout that flows. Stay away from a home with a choppy layer. It can be very challenging and expensive to move walls, especially without a background in designing and contracting.
Try to find a house with the main bedroom on the first floor and a kitchen with more than one entrance.
Be Prepared to Get Dirty
Every fixer upper with require some elbow grease. Even if you choose to higher a designer and contractor, be prepared to devote lots of time to the fixer upper project.
A home project tends to be most effective when you yourself are willing to put in the work too. Don’t be afraid to give some of your DIY projects a try. Remember it’s okay to ask for help!
Always consult a professional before using heavy machinery.
Fixer Upper House
Buying a fixer upper house is an exciting be a great decision, but there are some things you need to know before making the investment. Be prepared before you make the purchase and do your research ahead of time.
What are you waiting for? Your new home awaits!
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