When purchasing a fixer upper home there is certainly some risk involved, but for many, the benefits far exceed the risks. There are several things to consider first, some positive and some negative.
Things to Consider When Buying A Fixer Upper
Anytime that you purchase a home, whether it needs love or if it is move-in ready, you already need to be considering the resale of that home, no matter what your plans for the future might be. This will better enable you to make the right choices at the right time. Making good buying choices will help you make good selling choices later, and you wouldn’t want to make a purchase that will not return your investment plus a profit later.
The Perks
The price of a house that needs some attention is one of the main draws behind purchasing a fixer upper. A large number of buyers are looking for something that is move-in ready so the competition for fixer-upper properties won’t be as high. Many people are not willing to look beyond a building’s flaws to see its amazing potential, and sometimes you can find killer deals on overlooked homes because of some torn up carpet and a few broken windows. There is also the ultimate advantage of being able to transform the home with your own ideas and visions, giving it the character you’ve always wanted in a home without spending a fortune.
The Downsides
Since the price of many fixer uppers seem so affordable up front, many people focus on “today’s costs” and don’t think about the costs of tomorrow. While many common issues with fixer uppers are relatively inexpensive to solve, some are not. Painting, replacing carpet or adding a deck are pretty affordable, while replacing HVAC systems or re-roofing can get pricey. Having inspections performed by professionals is never a bad idea before you buy, but make sure you look for experienced inspectors, as they are not regulated by state.
Location, Location, Location
It stands true no matter how you look at it. Location is the first thing to consider when purchasing any home whether it’s move-in ready or a fixer upper. Buyers will be more interested in appealing neighborhoods, than the character of the home. Fixer uppers in nice neighborhoods that are owner friendly will always sell more successfully than those that are close to industrial areas, or less accessible to schools, and other necessities. Take the neighborhood’s growth into account when you purchase as well. If it is in an area where new housing developments are being built there will be a lot of buyers in the area in the future.
Layout
Consider the layout of the home carefully. What are its biggest selling points? Buyers that have small children may not want to purchase a home where the bedrooms are too far away from one another. Also, consider the size of the home. Buyers looking for a certain size home may buy something larger, but rarely buy something smaller that what they had in mind. Kitchens that have more than one entrance are a selling point, as is homes that open to a common room with multiple entrances.
This article was provided by Linda Hare who specializes in helping investors find real estate in Merritt Island. If you’re looking for a great place to find fixer uppers, you can also check out real estate in Titusville FL and real estate in Cape Canaveral FL.
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Excellent article. I think you more than covered all the basics of getting involved in a fixer upper. Definitely not for the faint of heart but at least having read this folks can go in with their eyes wide open!
Homes in Madison´s last [type] ..LakeandCityhomes.com gets a facelift!
Thanks for stopping in Jolenta!
I would add “know your skill-set”. The number of people I have worked with that thought they could handle a certain renovation item, and couldn’t, is quite high. Know what you need to outsource, and know your limitations. Helps with the calculations!