Fixer upper homes are those that are in need of repair. They make for good investment because buyers generally buy a fixer upper home at a much lower price. These properties gain good value once they are fixed up and sell at a significant profit. Although purchasing a fixer upper home is lucrative, buyers need to consider many factors before going in for the fixer upper property of their own.
The following are the points you need to know when buying a fixer upper home.
Location. The location of the fixer upper home plays a major role in contributing to its future value. You should check if the home is located in a suitable neighborhood with a good environment. The buyer should also make sure that the fixer upper home chosen is closely located or has easy access to essential amenities such as shopping malls, schools, colleges, transportation, medical establishments etc. With the location of the home you should be able to estimate if the proposed improvements for the home will increase its value to that of the other homes in the neighborhood.
Price. The price of the fixer upper home will directly influence the profits you make. To gain maximum out of your purchase, you need to calculate the best buying price for the home. This can be done by calculating how much the home will sell for if it were in top-notch condition. Then you should deduct the costs of home repairs and improvements from the sales price. Subtract a further 10 % to 15 % for unexpected expenses. The final amount should be the best price for purchasing your fixer upper home.
Call in a home inspector. You can also get the fixer upper home inspected by a home inspector who will give you a report on the major components of the house such as its structure, exteriors, interiors, electrical system, heating system etc. Based on the report, get your home appraised by an agent. This will help you fix the purchase price of the home and give you a good idea of its sales price after renovation.
Be flexible and ready. Renovating a fixer upper home could be mind boggling and pretty tiring. You not only require ounces of patience but also a good deal of time. Be prepared for the renovation to stretch for a longer period than expected.
With good foresight and a flexible approach, your fixer upper home buying experience should prove to be a pleasant and profitable one.
