Buying a fixer-upper can help you save a significant amount of money. You should not have any trouble finding hundreds of discounted houses in your area. However, you should take careful measures while shopping for any house that needs cosmetic or structural repair.
Many first time home buyers and novice real estate investors make tons of mistakes while acquiring their first fixer-upper. Here are a few tips that can help you have success with this exciting project.
Choose a Desirable Location
Location is the first thing that you should take into consideration. The subject property should be in a desirable neighborhood so that it will be attractive to prospective buyers. Here are a few questions to keep in mind:
-Are the property values rising in the neighborhood?
-Is the crime rate low?
-Is the house located near schools, a shopping mall, or a business district?
Buying a fixer-upper in the wrong area can lead to problems down the road. The answers to the questions above will help you pick the right neighborhood.
The Selling Price
If the subject property is being marketed as a fixer-upper, it should be listed at a discounted price. You should do your due diligence before making an offer. Don’t fall in love with a house before you check out the price first. Find out what similar homes are going for in the area. A seasoned real estate agent or a real estate valuation service can help you with this.
Get an Inspection
You may have a knack for do-it-yourself projects, but this is not the time for you to put your skills to the test. When it comes to rehabbing a house, you should hire a professional home inspector to check out the property. The inspector will look at the home and make a detailed list of necessary improvements. The home inspector’s service will help you save time and money. The inspector’s report will also help you decide if you should buy the house or walk away.
Place Contingency Clauses in the Contract
Don’t be afraid to put contingency clauses in the contract. They will protect you from unforeseen events that could ruin the deal or project.
Hire an Experienced Rehab Team
When it comes time for you to hire a rehab team, make sure you get several bids from experienced crews in your city or town. In addition to comparing price quotes, it’s imperative that you check references before making any decisions.
Buying a fixer-upper can help you save thousands of dollars. You will also get instant home equity after your purchase. Following the simple tips listed above will help you have success with finding and rehabbing a home that needs a little tender loving care.