Today I want to talk a little bit about buying a fixer-upper. Is it worth it? How can you tell?
The first thing you want to do when considering purchasing a fixer-upper is evaluate the price. Do your homework to make sure you can afford the project.
Treat the remodel like it’s a business, not a hobby or a get-rich-quick scheme. Determine the after repair value, the value of the home after it’s repaired, based on the market values of the homes in your neighborhood.
Next, start evaluating what improvements are needed. Some projects, like painting and landscaping, have more sweat equity involved and will give you more bang for your buck.
Get accurate estimates for professional projects such as getting a new roof or putting in new floors before you commit to buying the house. Those projects can add equity, but they can also be very expensive.
Stress is a huge factor when taking on a fixer-upper, so you need to make sure you can handle it. There are hidden costs that always pop up during a remodel, so having some extra money set aside will help keep things running smoothly for you.
Lastly, hire an expert to help you through the process. Have someone who is familiar with fixer-uppers help you make decisions in order to stay on a clear path and stick as closely as possible to your budget.
If you have any other questions about fixer-uppers or if you have any other real-estate related questions, please don’t hesitate to give me a call or send me an email. I’m more than happy to help.