Not all fixer uppers are as challenging as the photo!
A fixer upper has an appeal to some home buyers. They can be a great way to enter the housing market and give buyers the ability to make the home uniquely their own while building equity too. While some people aren’t interested in the time and labor that is involved in a fixer upper, others are excited for the challenge. If you are one of those adventurous souls, before you put in an offer on a fixer upper, here are a few things to consider.
Location, location, location
If you want to have a return on your investment, then the location of the home is important. Purchasing a fixer upper in a neighborhood that is being revitalized or in a well maintained neighborhood will increase in property value after you’ve put in the sweat equity. The old saying, “buy the worst house on the block” applies here.
How much time and money do you have to invest?
Fixer uppers come in many shapes; some homes just need new paint, carpet, and other cosmetic changes like patching on walls while others may need more intensive work like foundation repairs, a new septic system or roof. It is important for you to know what you can do, what you need to hire a professional to do, and how long you and how much realistically want to spend on the home. A home inspection, once you have a ratified contract, can help you better understand the true condition of the home. If you are considering a major renovation, it may be helpful to have a contractor come with you to tour the home.
It’s also important to note that while it will be less expensive to buy the home, you will need cash on hand to make repairs. Their are some loan programs out there that can help you finance the repairs, but you’ll have to talk with a lender first.
Look at the floorplan
While it is made to look easy on tv, sometimes changing the layout isn’t quite so simple as taking a sledgehammer to a wall. Structural engineers need to be brought in when there are load bearing walls, so finding a fixer upper that has a floorplan that you can work with is important. Flooring and paint are easy changes in a home that can make a big impact, but, if the home doesn’t have an appealing layout, buyers aren’t going to be as interested in it if you ever decide to sell.
Ignore the décor
It can be hard to visualize a home with fresh paint and new flooring when you are staring at wallpaper from the 1970s, but when you are viewing homes, try to ignore these things. Instead focus on the things that can’t be changed. The condition of the roof, the age of the windows, and the condition of the water heater are all more important than the avocado green refrigerator.
Create an emergency fund
If you are purchasing a fixer upper, then you most likely have already saved up some money for repairs and updates. Make sure to save up an emergency fund too. This fund can be used for unexpected repairs that you didn’t come across until work on the house began. Please don’t think that you are special and this won’t happen to you. You must have money set aside; in the worst case scenario, you don’t use it on the fixer upper and go on a fabulous vacation.
Ready to start your search for a fixer upper home? I can help! Contact me and we can chat about the all the fixer upper homes available around Locust Grove.
