Before you invest in a fixer upper, you need to have a good understanding of what you’re getting into. There’s some research involved and a few things you need to consider. If you’re someone who loves putting in work to get great results, this is surely something you can invest your time and money into. We want to help you figure out if buying a fixer upper is really worth your time and money.
Consider How Much it Will Cost You
This is typically the first thing people consider when looking at fixer uppers for sale, and rightfully so. You need to consider how much it is going to cost you to get a home inspection. There may be some major problems that will cost extra money to fix. You’ll also have to get in touch with a contractor so they can quote you on an approximate cost of how much the work will cost. The ideal fixer upper is one that just needs cosmetic alterations. This will end up being significantly less expensive than a home that needs an abundance of structural repairs. Then, of course, you have to consider the price of the home itself. If everything is equal to a reasonable price, you’re on the right track.
How Much Time Do You Have?
Big renovations don’t happen overnight. Many fixer upper homes take a while to improve. You likely won’t want to deplete your whole budget within the first few months of owning the home. You will want to have a strategy outlining priorities and a timeline. Make sure your plan is realistic and that it’s clearly communicated with everyone involved in the project. You’ll also want to make sure that you can live with a less-than-perfect home for some time. You might have to deal with ugly wallpaper for a few months.
Are you Ready to Use your Handyman Skills?
There’s no doubt that you’ll need outside contractors to help you in your renovations. There will be some DIY home renovations that might save you money. A fixer-upper is often considered a “handyman’s dream” for a reason. When you decide to take on a DIY project you have to consider whether you have the capability to do it and the time to complete it. It’s also very important to consider the risks of a DIY project. If you’re not experienced and there is a high risk of danger, this project should be handled by a professional.
Are You Buying a Home to Flip it?
Another thing you should consider when your renovations are underway is your timeline. One of the biggest common mistakes many first time flippers make is not timing the flip properly and subjecting themselves to more carrying costs than expected. Estimate how long it will take to flip the house, and factor in a lot of extra time. What season will you be listing? For example, if you are flipping a home and your renovations take longer than expected, and you miss out on the spring market (when real estate is super busy), you could be losing out on the profits you expected to make. The key to a successful flip is to have a good margin between your purchasing, carrying, and selling costs.
Are There Cheap Houses for Sale?
If you’re buying a fixer upper, you likely don’t want to spend too much money on it. The goal is to buy a house with a lot of potential at an inexpensive price. This could be your potential dream home if you put enough effort into it. Make sure that the price is set at an appropriate amount so you’re confident that you can increase the value of it.
If you’re interested in buying, check out our listings and see if there’s a property that’s right for you.