Fixer-upper homes are properties that are not in good condition upon selling in the market. However, owners who need instant cash or need to leave the property still sell these properties. That is despite such properties unfavorable conditions. And they do it because of many possible reasons, such as having no money for renovation or simply don’t want to leave the home without earning from it.
Now, from a buyer’s perspective, these properties have alluring price tags which are significantly lower than many other homes in the market. These are great properties to buy and renovate for selling purposes. Or, if their cost plus renovation expenses are lower than the price of homes in good condition. They can become a dream house after months of reconstruction.
That sounds a great deal. But you shouldn’t bite on it without considering important factors. You don’t want to end up in large hassles or big unneeded expenses because of a wrong decision. That is why you must know the important points in buying a fixer-upper home today.
What to Think about in Buying a Fixer-Upper Home?
1. What are your Limitations and Budget?
First, consider your financial situation and your capacity to renovate an entire property. Remember that you need to purchase a home despite its small price tag, hire a home inspector and structural engineers, then you have to spend on its reconstruction. Be sure everything fits in your budget, and you’re able to handle a reconstruction project over a period of time.
2. What is the Condition of the Home?
In buying a fixer-upper, you must know what you’re dealing with. Have a full scope of the property’s condition, so you’d know what things need fixing. This also tells if you can handle its repair demands or not.
The best step to do is hiring a reputable home inspector before buying a fixer-upper home. Also, contact a structural engineer to gauge the structural condition or integrity of the property. Yes, these experts don’t come cheap, but they can steer you away from wrong decisions which lead to bigger expenses.
3. Location, Location, Location
This is one of the most valuable reminders the real estate industry offers. Always keep location factors in mind while selecting a property. Choose one that’s near to your office or to your kid’s school. Moreover, choose one accessible to major transport lines and key establishments such as hospitals, supermarkets, and restaurants.
4. Plan your Steps
Before you even look for a fixer-upper home, plan your steps carefully. Think if you want to buy one for selling later on, or if you want to live in it for many years. Then, when you’ve already spotted a property and have done inspecting it, plan the reconstruction process.
Begin by knowing about the required building permit for reconstruction of a fixer-upper property. Then, look for reputable contractors you need, as well as the best suppliers of affordable yet quality materials. Your real estate agent can help you find the best vendors.
5. Find Financing Options
Lastly, there are companies that offer to finance for buyers of fixer-upper homes. They help finance the purchase price and the reconstruction expenses in one mortgage loan. Ask your real estate agent about these companies today, since you can’t go to regular mortgage lenders. Regular mortgage lenders usually don’t approve fixer-upper properties in their deals.
Keep these points in mind before and while finding fixer-upper homes today. Stay away from big wrong steps which would lead you to big problems later on.
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