Buying a house? Choosing a fixer-upper can be an amazing idea. There's perhaps no other investment out there that has the potential to pay off as consistently or as handsomely as an older home that's been properly renovated. Plus, it gives the handy among us a treasure trove of fascinating projects to work on.
At Remerica Hometown III, our local REALTORS® have worked with thousands of buyers who are interested in fixer-upper properties. While there are many wonderful reasons for buying a house that could use some TLC, it's important to go into this adventure with both eyes open.
The decision to buy any house is a complex one, and that goes double for a fixer-upper.
How do you know if it's the right move for you? Avoid extra big buyer's remorse by following these tips:
Figure Out the Home's Renovated Value
Your real estate professional can help you determine the likely value of your property once all the renovations are in. Of course, there's always a possibility that the perfect buyer will simply fall in love with it and pay more than expected! Still, a realistic estimate based on local property values should be your guide. This will help you determine how much to invest: Not just in money, but time and sweat.
Determine Your Maximum Buying Price
Your maximum buying price should take into account your renovation budget and all the other likely expenses that will go into refurbishing the house. When you are deciding whether a house is a good fit for you, be sure to subtract these factors from its renovated value:
The amount left is how much you could reasonably expect to profit if you decide to "flip" your new house quickly. Adding an extra 10% builds in some breathing room in case certain aspects of the renovation don't go exactly according to plan.
Get a Complete Inspection Done Before You Commit
No matter whether you plan to flip a home or gradually renovate while living there, you should have a professional inspection performed as soon as possible. This will help you uncover any issues that need to be addressed before you can sell the home on. Be sure you use a licensed and insured inspector who meets all state and local regulations: The last thing you need is an unexpected surprise later on.
When reviewing the inspector's findings, you should be attentive to electrical, plumbing, foundation, and roof issues. Some of these can turn out to be severe and may have repair costs well in excess of your renovation budget. Luckily, this happens in only a small fraction of cases.
Once you have completed your renovations, perform a second inspection: Many prospective buyers in the Canton area will expect to see a clean inspector's report before they consider your property.
Prioritize and Keep Your Costs Down
When deciding which renovations to focus on, remember that improvements to the kitchen and bathrooms tend to add the most value to any home. Structural repairs and changing the house's layout do very little, if anything, to increase its value. "Curb appeal" is the name of the game – and this is another area where help from the right real estate experts can be truly essential.
Take the guesswork out of buying a house that needs work: Connect with the experts at Remerica Hometown III. We'll be glad to walk you through your options and help you find the perfect property to meet your needs. To learn more or get started, simply contact us.