Buying a fixer upper can be a great investment if you have the time, money, and vision to revitalize the home. You see all these people doing it on television, so it can’t be that hard, right?! A fixer upper can be a success, but there are some important factors you need to keep in mind before you make such a big financial and time commitment.
Are you willing to be patient?
One of the biggest details involved in purchasing and renovating a fixer upper is waiting for the right property to come along. You want to find a home that is a good deal, in a nice area, and (hopefully) won’t come with a lot of surprises once you start construction. As you can imagine, these types of properties are not listed every day. And when they are, they are often under contract very quickly, since there are others out there just like you looking for the same deal. With a little patience and the right realtor, you can find a fixer upper property that will work for you.
Are you ready to get your hands dirty?
Especially if you are buying a fixer upper with the intention of selling it right away, you can maximize your profit potential by doing as much work on your own as possible. But let’s be clear, there are plenty of areas that will need assistance from a professional. If there are any issues with the foundation, plumbing, electrical, or any other significant element, it is imperative that you allow a professional contractor to handle the work. However, there will still be lots left over that you can handle. From painting to installing flooring to landscaping, the more work you can tackle on your own, the more money you will be able to make in the end.
Do you have your finances in place to cover the project?
You may find the most perfect property that is just waiting to be brought back to life, but that doesn’t matter if you do not have enough money to both purchase the home and address all the necessary renovations. The good news is that you have options when it comes to getting a loan to cover your fixer upper project. If the house needs some minor work, you may be able to pay for the improvements with money you have already saved. If the renovation is going to be significant, then you will need to look into your loan options, whether that is through a mortgage or home equity line of credit.
Do you plan on living in the home?
One of the perks of renovating your own fixer upper is that you can make the home exactly how you want it. Depending on the level of work that is necessary, you may have the ability to choose the layout, cabinetry, flooring, light fixtures, paint colors, and so much more. Plus, if you don’t mind living in a little bit of construction, you can continue to tackle projects as you have the time and money, rather than renovating and finishing everything at once.