TV shows make finding a profitable fixer-upper seem easy. But in the real world, there are real challenges and decisions to be made.
Whether you’re buying an investment property or a starter home for your family, there are dozens of factors to consider. How much will it cost to renovate? Are home values rising or falling in the neighborhood? How in-demand is the area?
Want to make sure your purchase isn’t a money pit? Ask yourself these four questions:
1. Does it have good bones? We want to avoid expensive repairs that would eat into your bottom line. It’s vital to have structural elements like the roof, foundation, plumbing, electrical and HVAC system inspected.
2. Is the price comparable to the area? The property may come at a fixer-upper price, but how does it compare to others in the area? Let’s also take a look at new developments or zoning laws that could influence future home values.
3. Does it need special inspections? Fixer-uppers need to go beyond standard inspections. Things like sewer lines, septic systems and pools age with the property, so it’s important to have each evaluated.
4. What does your contractor think? Bringing a contractor on board early is essential when creating your renovation budget. We need to estimate the cost of any aesthetic changes or upgrades to avoid over improving the home.
Remember, it’s not just the sticker price you want to consider when buying a fixer-upper, but the cost of the entire project.
Do you need help finding the fixer-upper of your dreams? Together, we can evaluate the purchase price, factor in repair costs and determine the future resale value of the home.
If you’ve already got your eye on a fixer-upper, or want help finding a contractor in our area, get in touch today.