Things To Consider When Buying a Fixer-Upper Home
If purchasing a home is the largest financial decision most people will make, and it is, then buying a fixer-upper home and flipping it for a nice profit has to be the ultimate in dream-realization.
But is buying a fixer-upper doable for you? Is it a wise decision? And what things should be considered when undertaking such a project?
Here are some tips to consider if you are thinking of looking for, and improving, a bargain home:
- First and foremost, a little money spent now will save you headaches later. Know what you are buying, and to that end, arrange for a home inspection. In order to make the maximum on your flip, you want cosmetic and easy-to-fix problems and not structural problems or problems related to plumbing or electrical wiring.
- Location, location and location. The general rule when buying a fixer-upper is to buy a rundown home in a neighborhood of homes of considerably higher value.
- Get pre-approved for a mortgage before you begin your search. You don’t want some lengthy approval process slowing you up when it comes time to make an offer.
- How big a fix are we talking about and what are you capable of doing? Be realistic about this. Can you tear out old carpet and replace? Can you do tile work? Everything you can’t do means money spent hiring someone else to do it.
- How much time do you have to devote to this? Most people have full-time jobs and little time to devote to remodeling a home. Are you one of those people?
- Compare prices in the area. An ideal fixer-upper is one that can be purchased for 20-30 percent below potential fixed-up value.
- How long will the flip take to complete? Remember that while improvements and repairs are being made, you’ll be making house payments. Be realistic in your estimate of time.
There is money to be made for those willing to undertake a fixer-upper. There is also money to be lost for those not prepared.
Any questions? Give us a call.
Sports Relocation, Inc assists players/coaches of all professional sports leagues including the NBA, WNBA, NFL, MLB, NHL, and entertainers relocate nationwide by servicing their Real Estate & Relocation needs. Ikem Chukumerije is licensed to practice real estate in New York, California, Nevada, Florida, & Georgia. Sports Relocation, Inc operates nationwide and provides elite athlete relocation services in all 50 states and internationally.