Everything You Need To Know Before Buying A Fixer Upper
In theory, buying a fixer upper is a great idea! If you want to live in a certain area and can’t afford a house in move-in ready condition, or if you’re one of those people who love the charm of an older home, it actually might be your only option. But ask anyone who has made it through a major renovation, and you’ll find out that you might be in for a bigger headache than you could have imagined. Before you set out to do your remodel, here’s some need to know advice to help you make it through.
1. Choose wisely
Location, location, location. You’ve heard it before, but when it comes to buying a home, it’s maybe the best advice we can give. You can have an amazing home in a less than ideal location, and your odds of resale go down immensely. Be sure to choose the worst house in the best neighborhood (Chip and Joanna Gaines style) in order to have the most resale value. Also, be sure to consider the overall layout of the house. Although some walls can be knocked down, if you choose one with a wonky layout, it isn't always fixable.
2. Do the math first
If you’re doing a major remodel, you’re going to need a major budget. Consider the list price of the home and then how much you’ll have to put into it to get it into livable condition. The cost estimate should include the cost of labor, mortgage and materials. Now imagine everything that could go wrong, and add an additional sum of money to cover that. One mistake new home renovators make is not planning for the unexpected things that you won’t know until you start the process. Just hope for the best and prepare for the worst!
3. Get a home inspection
Whether you’re purchasing a new build home or one you plan on tearing down to the studs, an inspection is the most necessary part of the process. Unless you’re a licensed home inspector yourself, you don’t know what to look for in terms of problems in a home. Be sure to hire a licensed professional (no, your very handy uncle does not count) to check the home for any major issues before you sign on the dotted line. This can save you from a lot of heartache and money lost in the future.
4. Plan to get your hands dirty
In order to get the maximum bang for your buck, it always helps to do some of the work yourself. If you can take down wallpaper, paint, spackle, install flooring, etc., you’re going to make your project a lot more cost effective. Just put on a helpful YouTube video, roll up your sleeves and get to work. Smaller projects are totally doable for even the most inexperienced home flipper. BUT that leads us to number five…
5. Know when to hire a pro
There is a lot of fun to be had in the home renovation process, and it’s pretty satisfying to see your own handiwork. But you have to know your own limitations. If you’ve never done electrical in your life, this is probably not the time to learn. Always use a licensed plumber and electrician, as these are major parts of your reno that really need to be done by an expert.
6. Expect delays
This is another part of the budgeting discussion, but it’s really important. Say you’re buying an investment home to flip and then resell. You may only have a certain number of mortgage payments in your budget in order to continue to be right side up on the deal. But keep in mind…there are always delays. With every major renovation, something usually goes wrong or takes longer than expected. It’s really important to keep that in mind so you aren’t surprised.
