With the rising housing costs in the U.S., more and more people are considering investing in a fixer-upper. And if we see into it, the investment can be worth it. Buying a home and renovating and remodeling it according to your style can be a lot fun! But, buying a project house isn’t as simple as it might seem. To help you out, we have three tips on how to properly evaluate a fixer-upper for the largest return on investment.
So, let’s get right into it, shall we?
1. Check How Much Remodeling Is Needed
While you might be satisfied with spending less money on buying the house, the remodeling costs can easily add to and even make you go out of budget! It’s always better to evaluate a fixer-upper and identify the places that need to be renovated before purchasing. While some people are ready to redo the whole property from scratch, others don’t want to spend a hefty amount apart from what they spent on buying the property in the first place.
Therefore, you will need to visit the building and inspect the places that need remodeling. Taking a professional with you is even better to make things easier. In general, structural renovations are costly, so it’s better to avoid a property that includes them.
You should also talk to the seller about all the repairs they’ll pay for. Inspecting the foundation of the building and asking for roof certification is also important.
2. Plan Your Budget
It’s not always a good idea to set aside the budget only for buying the property. Remember, when buying a fixer-upper, you’ll have to spend a lot of money on remodeling it as well.
So, make sure your budget includes the cost of the property as well as the amount you’ll spend on remodeling later. Some fixer-uppers will need a lot of remodeling, while others will only require minor fixing and renovations.
Here are some renovations that won’t put a big dent in your budget:
- Fixing windows
- Painting the house exterior
- Changing switches
- Laying tiles or carpets
- Installing new kitchen cabinets
On the other hand, some renovations will be costly, which include:
- Replacing electrical wiring
- Remodeling the complete bathroom or kitchen
- Building a garage
Depending on your budget and how much you plan to invest in the flip, you can choose the fixer-upper that fits your needs best.
3. Consider the Location
You won’t want to spend too much money on a fixer-upper just to resell it at a lower cost after a few years. Therefore, considering the location of the property is essential, even if you want to live in the house.
Make sure you do all the necessary inspections beforehand. If the area has too many beetles and termites, it’s better to do a pest inspection to keep yourself away from the bugs.
Minor restrictions like not allowing you to plant trees because they pose a risk to the building can prevent you from building your dream home. So, it’s always better to know about all the council restrictions in the area. It’s advised to talk about all of these things with the seller beforehand to avoid any potential problems.
Always Evaluate A Fixer-Upper Before Buying
Buying a fixer-upper can be a difficult task, especially with too much to look for and plan before purchasing the property. But, with our tips to evaluate a fixer-upper, you’ll get a clear idea of the things that need your most attention.
So, follow these tips and get ready to remodel your new house!