Always dreamed of renovating a
home exactly to your specifications, or have you found an older house that is
structurally sound but needs a lot of work inside? Perhaps the price is right and you can't resist all that house
you can get for your money. Whatever
the reason, buying a fixer-upper can be both an exciting and rewarding purchase
or a financial and time consuming disaster, depending on whether you are
prepared for what you have gotten yourself into. So what should you know before buying a home that requires a
little or a lot of tender loving care?
The Benefits
The benefits of purchasing a
fixer-upper are obvious. The price is
usually right, and if the seller wants a quick sale because of decreased
interest in the home, you may be able to negotiate a really great price. Also, if you intend to flip the home after
the renovations, the profit for the money and time you have invested can be
quite considerable. The trick to
getting these benefits, however, is knowing what type of property to look for,
as well as having an accurate idea of the associated costs, and realistic
expectations of the time and labor it will take.
What Makes A Great Fixer-Upper?
There are several features that
may make for a great fixer-upper.
Location-Buying a home in a
desirable neighborhood is always a smart idea, particularly with homes that
require a lot of work. Purchasing a house in a sought after area can mean a
greater profit margin for resale value.
Layout And Configuration-This is
especially important if you plan to sell the home after the renovations are
finished. Selecting a home that will
appeal to the greatest number of buyers will get you the best price. Also, choosing a home with a layout that
flows may save you a considerable amount on the actual renovation costs because
you are less likely to need custom installations and work.
Condition-Ultimately the most
important consideration is the actual condition of the home. Choosing a
fixer-upper with only cosmetic problems such as damaged flooring or old
fixtures and appliances, and in need of only a new paint job, can often have
the greatest profit margin and require much less money and time.
Overall, when purchasing a home that needs work,
getting a qualified home inspector's advice and getting estimates of the cost
of work to be done before making your offer can make all the difference.
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