What to Look For When Buying a Fixer Upper House?
Buying a house with a little TLC might seem like a bargain, especially for buyer who love older houses and love to work on them. The notion of buying a fixer-upper can be irresistible. Just think: You can get a good deal a rundown place in a good neighborhood for way below market price, invest some time and money renovating it, and end up with a like-new house that’s worth at least twice what you paid for it. Sounds good, right? But are you the person to give that house an overhaul? Find out whether or not should strap on the tool belt.
The following are four things that you should look for when hunting for a fixer-upper to invest in, if you are into it.
1. The location
Location, location, location as they say. If you are going to invest in a fixer-upper property, make sure it is located in a neighborhood where it is worth to invest in. There is no point in investing thousands of dollars fixing up a property in a neighborhood full of abandoned buildings and overcome by criminal activity. Guess what? It doesnt matter how beautiful the house looks after renovations, no one is going to want to live there. If youre going to buy a fixer-upper, make sure its in a neighborhood where the buyer’s demand is high.
2. The condition
Although the point of a fixer-upper is that you are buying a house that needs repairs. But that doesnt mean the condition of the house doesnt matter. There are big differences that buying a house that needs to repaint and buying a house where need to replace the roof. There are three things youll want to look for in every fixer-upper that you may consider the foundation, the roof and the structure. If any of these three things are in poor condition, odds are youll be better off not investing in that particular house.
3. Do your homework
You probably think you have done your homework, but have you really? If you’re going to buy a fixer upper, bring in a contractor for a walk-through beforehand. You should also do your homework so you know what materials cost and how much time a project takes, and so you know if what your contractor is telling you is fair. Ask your contractor to give you a written cost estimate on the tasks hes going to do. Doing that will also help you when negotiating for a sale. assuming you have some “immediate concerns”.
4. Know that anything can go wrong
Even problems can crop up with a new house too, but it’s still worth remembering in case you’re risk-averse. When you’re buying a home that needs fixing, whether immediately or in the years to come, you may find yourself in a fix no matter what you do.
If you are going to invest in a fixer-upper, whether its to flip the house for a profit, rent the house out or live in it yourself, make sure that you keep these four things in mind before you decide to buy.
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