How To Find Fixer-Upper Homes
Buying a house is not easy if you are on a tight budget. It might come as no surprise that you can choose affordable fixer-upper over a place that is ready to move in. But, how to find fixer-upper homes that help you remain within your budget and help you make the most out of your investment.
Before proceeding further with the purchase, make a point to have an assigned budget, preference, and lifestyle you are looking for. Continue reading to learn more about the meaning, pros, and cons of investing in a fixer-upper home. Apart from that, you will even get an insight on how to choose the perfect fixer-upper home for yourself.
What is a Fixer-Upper Home?
A fixer-upper home can be defined as a property available for sale at a lower price as it needs major maintenance work. These kinds of homes are more attractive because of their lower purchase price. Not only can you buy the homes for cheaper rates, but there is also less competition for such homes, so you can likely buy a home at a reasonable price.
Choosing a fixer-upper home will allow you to customize your home and choose the materials, contractors, colors, and everything else to renovate your home.
Pros Of Choosing A Fixer-Upper House
A fixer-upper house is less expensive as compared to other homes. You can take advantage of its lower price and lower down payment and customize it according to your taste. Some people invest in fixer-upper homes as they want to customize their place according to their taste and interior design trends.
Cons Of Choosing A Fixed Upper House
Before choosing to invest in a fixed-upper house, there are some drawbacks that you need to consider. Depending on your needs, the renovations on a fixer-upper home can get expensive. While you will have an estimated price, there won’t be any accurate figure for renovation and you might have to pay some extra surprise cost. Even though you get a thorough inspection done, you can still face unexpected issues if you invest in an older house.
The Best Fixer-Upper
The best fixer-upper can be defined as a home that people in the present do not really like, but everyone will want in the future. Some of the imperfections that turn people away include peeling paint, dated fixtures, or worn carpets – all of which can be corrected easily.
They usually have the potential to offer you with big resale profit. Another important point that you shouldn’t forget here is that not every fixer-upper can offer you a profit. Whether a home can turn into a potential profit investment is dependent on different factors.
Location of the Home
Picking a good location to purchase a fixer-upper needs some market research; however, there are some signs that can help you settle down on the best one. Check the trends in the local market, along with the local business’s strength and school district. Consult a realtor and see what the demand is in your area and what types of location amenities can help you sell the house. You can benefit the most if you can get the proper location when purchasing a fixer-upper.
The Home’s Layout
The next thing to focus on is the layout. The best fixer-upper that you can purchase and may likely appeal to several buyers is a three-bedroom with more than one bath.
A two-bedroom home might be profitable only when the house is a bigger size than others in the neighborhood. However, a three-bedroom house is always desired by most people.
The house’s layout should be practical and with a good floor plan. The bedrooms shouldn’t be at opposite ends of the house as it will turn down most of the buyers with young children. Kitchens that have more than one entrance are preferred.
A fixer-upper requires work; however, some matters are more expensive than others. You should separate the essential problems from the non-essential ones so that you can stay within your budget.
Easy fixes comprise the following:
- Fixing broken windows
- Painting the interior and exterior of the home
- Installing new light fixtures and ceiling fans
- Replacing doors
- Installing new kitchen cabinets or refacing or painting them
- Changing the light switches
- Refinishing the floors
The fixes which are on the expensive side include the following:
- Replacing of the HVAC systems
- Building up of the garages or additions
- Completing the kitchen or bath remodels
Replacing every plumbing fixture, sewer line, and electrical wiring
Examination Checklist for Fixer-Upper Homes
Choose an accredited home inspector before purchasing the house. There are different home inspection types that you should consider before purchasing a fixer-upper. Consider the following things as a necessity to get a profitable deal:
If you don’t get any evidence as to the roof’s age and condition, get a roof certification at the expense of the seller.
Not all sellers will invest in a home warranty, but some might stay on the safer side by choosing the best home warranty plans in the market. So, consider asking the seller about it.
It might be necessary if the area has already been dealt with the damage caused by pests.
Sewer line inspections:
Get the sewer lines checked by professionals.
Not every fixer-upper will need the same amount of work; everything is subjective. It depends on your requirements. Before you purchase, consider remodeling expertise and how much you want to spend to make the home livable.