Buying a fixer-upper can be an exciting but challenging venture. Here’s how you can navigate the process and come out winning.
- Consult the Pros for Fixer-Upper Advice
Your first step should be consulting a seasoned real estate agent. They can help determine the home’s value, guide you through the process, and recommend reputable contractors. When vetting contractors, ask for photos and references of past projects to ensure reliability and quality.
- Consider What You Can DIY on a Fixer Upper
DIY renovations can save you up to three-fourths of the project costs. High-labor projects like landscaping, insulation, building a deck, or replacing windows offer the most savings. However, be realistic about your skills to avoid costly mistakes and unprofessional results.
- Put the Fixer Upper to a Comps Test
A real estate agent can review similar homes in the area to assess the home’s current and post-renovation value. This helps in framing a fair offer and ensuring you don’t overpay.
- Gather Contractor Opinions and Estimates
Before making an offer, bring in contractors to walk through the property and provide written cost estimates, including materials and labor. Itemized estimates help distinguish between essential and optional renovations.
- Factor in Alternative Living Arrangements
Consider where you’ll live during renovations. Small projects may not require relocation, but larger ones might. Plan for temporary housing and factor this into your budget.
- Complete Inspections
A home inspector can identify hidden problems like structural issues or outdated systems. Inspections are crucial for avoiding costly surprises.
- Beware Budget Busters and Hidden Costs
Prioritize essential repairs over cosmetic upgrades. Ensure major systems like electrical, HVAC, and plumbing are sound. Cosmetic issues can be fixed later.
- Cushion Your Budget
Add a contingency budget of at least 20% to cover unexpected costs. Getting multiple bids for the work can help keep costs in check. Ensure the final product’s value aligns with your investment.
Is a Fixer-Upper Right for You?
Buying a fixer-upper requires time, money, and effort but can be rewarding. Consult a knowledgeable real estate agent to guide you through the process. With the right team and plan, you can turn a fixer-upper into your dream home.
Ready to take the plunge?
Contact us today to explore fixer-upper opportunities and start your renovation journey.
