Here are five things you should consider before buying a fixer-upper.
Many clients have asked me recently about buying fixer-uppers. Everything is becoming more and more expensive, and as a result, more people are considering buying homes that need a little work. This is certainly a viable option, but there are five things you need to be aware of before you buy a fixer-upper:
1. Why do you want to buy a fixer-upper? Is your goal to fix the property and live in it long term? Or do you want to flip the house for an immediate profit? If you just want to flip the home, you’ll need plenty of time and money to make it happen. If you plan on living in the property, you might plan on doing most of the work yourself. This is a great way to save money, but it’s very time-consuming.
2. How are your finances? If you want to buy a property that needs a lot of work, you’ll probably need to pay in cash. Most financed offers will only allow you to buy a gentle fixer-upper—one that only needs a little work. If you need cash, a hard money lender might be a good option. Not only will they give you the cash, but the process is quick. If you need to get in touch with a good lender, please reach out to my team.
3. What renovations are you comfortable doing? How many of the updates are you doing yourself? Do you have a contractor ready to do quality work? Answer these questions before you purchase a fixer-upper. You don’t want to get caught flat-footed.
4. Do you have the patience to follow through? Fixing a home that needs a lot of work is often more difficult than people assume. A few of my clients’ marriages have been tested while working on a fixer-upper. Even if you aren’t doing any of the work yourself, it’s a stressful experience, so be aware before you jump into the process.
5. Are you working with the right agent? There’s a lot that goes into purchasing a fixer-upper. Will they negotiate a good deal for you? Can they give you advice on what renovations to make? A fantastic real estate team should do these things and more to make your experience as smooth as possible.
If you have questions about buying a fixer-upper or anything else, please call or email my team. We’d love to help you in any way we can!