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So, You Wanna Buy a Fixer Upper?

Posted by Hughes Group Blog Team on Thursday, June 29th, 2017 at 9:43am.

 

Many people in today’s society love a good challenge. Maybe that’s why the trend of buying homes to fix up and sell has become ever more popular as time progresses. Renovating a home can be entertaining, fun, and fulfilling if done properly. Like many other types of risks, however, flipping a home can be frustrating if the market crashes or if expensive, unexpected projects crop up. A bit of research can help, not only during the renovation process but also prior to acquiring the property.

Purchasing the property and home to fix is the real key to turning a profit. Because so many homes are old, dilapidated, and in disrepair, it can be hard to know what may be too much to handle. When viewing a property, ask questions. This is incredibly important because every answer can help to frame what the remodel may require. When did the home last have a roof repair? Is all of the plumbing and electrical work from the original home or has it been updated? How is the foundation? When was the home last inhabited? Have there been mold problems in the past and how have they been remedied? Don’t be afraid to ask the nitty gritty questions, and don’t be afraid to say no if any answers cause discomfort. Often, if there is a sense that the project may become too overwhelming, there’s a high chance it won’t be a good fit.

Often buying a fixer-upper is a great investment. Look around at what the prices that surrounding properties are listing and selling. If the purchase prices for the home in question is lower than the homes for sale that are close by, it’s a good sign that the neighborhood values may help the home sell more quickly and for a higher cost post remodel. If there are quite a few homes up for sale or if the surrounding properties have been on the market for a while at lower prices, updating a home in the area may not bring in as much because the property values for the surrounding homes may be dropping. Location is just as important as any other aspect of flipping a home, so keep it in mind during the search for the perfect place.

When buying a home, it’s really important to know what the real estate market is like. Many first time flippers buy a home with high hopes and come to find that they overestimated the end profit. Though many still make a profit, it can be a disappointment to those who are expecting more money from their fixed up fixer-upper. Talk to real estate agents. Working on fixing up a property doesn’t need to be a solo job. Speak with professionals in order to have a better grasp on the reality of the situation.

Talking to specialists can be a great way to pick up tips and tools needed to complete more intricate projects. Because many contractors, plumbers, and electricians are experts in their fields, they can be a wealth of knowledge and may be able to help you assess whether the project needs professional help or if it can be done by amateurs.

Perusing through homes for sale can give an idea of the standard that a home should be brought up to in order to sell it. Try to attend events such as the Parade of Homes to pick up ideas from homes that sell for high dollars. Also try to keep up with cutting edge trends in things such as home automation and durable, yet beautiful, materials. So many awesome ideas and products are available; doing a bit of research and digging can uncover the perfect solutions to some home improvement problems. Go to the library and check out books that focus on overall home improvement or fixing specific problems. More knowledge obtained about a specific fix can instill confidence and make reaching the goals for certain projects easier. Don’t be afraid to be creative- often, the choice a buyer will make between two homes that are similar comes down to which home has the unique aspects that the buyer loves.

When looking to purchase materials for a project, it’s important to have a minimum and a maximum budget set that can be adhered to. The reason for having a maximum budget may be self-explanatory, but the minimum budget is also important. Having done research about costs and labor for each project, it’s highly probable that there are materials on the incredibly inexpensive end of the money spectrum, but often those products come with a cut to quality. By establishing a minimum, the temptation to reach for the bargain bag of materials is cut down.

Some homes that are considered fixer-uppers may have cosmetic damage that other buyers won’t like. People looking to purchase a home in a lower price range may not be looking for a project home. This means that the run-down homes can be remodeled and sold for a higher price with less money out of pocket because there are fewer people clamoring for the same place. These properties offer the ideal situations for people looking to fix up a home. Larger issues can also be fixed but can mean a bit more money and time must be invested before turning a profit.

Regardless of the problems that need fixing, beautifying a home can be a fulfilling and enjoyable experience. There’s nothing quite like the knowledge of a job well done. Oh, other than making money while finishing it! Remodeling a house requires a lot of dedication and hard work. In the heat of the moment, there may be doubts and a longing to quit, but persevere and a beautiful new place is waiting.

Sources

https://www.thebalance.com/buy-fix-and-sell-your-home-or-investment-1798730

https://www.thebalance.com/fixer-upper-homes-1798315

http://www.remodeling.hw.net/business/leadership/buy-fix-sell-profit-flipping-homes-can-be-lucrative-but-its-not-for-the-timid

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