Fixer-upper homes have become a trend with first-time homebuyers. Whether it’s the romance of reworking an older home or the prospect of making a profit, fixer-uppers can be an exciting challenge to take on. If you’re looking to find your first fixer-upper, but aren’t sure where to start, then the following tips can help out.
Figure Out Your Finances First
Buying a new home, or flipping your first one, is filled with excitement. But don’t let your feelings get in the way of making smart financial decisions. Before you start searching for properties to procure, make sure you know how much house you can afford. Look at your annual income and monthly spending. Factor in major funding concerns, such as down payments and repairs, and pull a copy of your credit report. It’s wise to figure out what kind of loans you’re eligible for and what APR you can expect before you visit your first potential home.
Stick to Your Budget
Once you have your finances figured out, be sure to keep your budget at the center of any real estate decisions. It’s easy to feel an emotional attachment to a beautiful home or be lured in by a hip neighborhood. But you shouldn’t have to struggle to afford a home that works for you, especially if you know you’ll have to foot the bill for repairs, too. Be willing to make some compromises when looking for properties and keep your entire budget in mind including funds set aside for the fixes needed later on down the road.
Find a Good Real Estate Fit
From price to neighborhood and resell value, there’s a lot to think about when it comes to buying your first fixer-upper. If you’re new to the real estate game, it’s smart to consult a professional to help you out. Look for a real estate professional that has some experience working with handyman specials or fixer-uppers and who knows the areas that interest you the most. Ask friends for recommendations and don’t settle until you find an agent who will truly work to find the right home at the right price.
Tackle These Top Tasks First
If you’re going to live in your new home, you need to work on projects that make living safe and comfortable first. Most people spend a good deal of time in their bathrooms and kitchens, so begin by focusing your efforts on repairs needed in those areas. Pay special attention to any signs of plumbing or electrical issues, which can raise utility costs or even cause an accident. Kitchen and bathroom remodels tend to add the most to your resale value, so getting these projects done can help you get a better price for your home if you flip it in the future.
Prepare for DIY Repairs
Part of the fun of buying a fixer-upper is taking on some home improvement projects yourself. Before you break out the hammer, make sure you have a good grasp of the project you are getting ready to complete. Make supply lists for each project and know whether you’ll need specialty or power tools to get the job done. Certain must-have tools including a good drill can be a good investment for homeowners. And no matter what project your managing, you should always keep safety a top priority.
Lay Out Long-Term Goals
Chances are, you have good reasons for buying a fixer-upper. Maybe you love the idea of making a historical home your own, or perhaps you’d like more of an investment. If you haven’t set some long-term goals yet, start thinking about them now. Decide whether you’d like to live in your new home or flip it for a profit as soon as repairs are complete. Both options have quite a few perks and cons to consider.
Fixer-uppers can be a fun way to get into real estate. Transforming an old home into the perfect home for you, or someone else, can be a positive experience, but you need to know where to start. So use the tips above to make your real estate wishes a reality.
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As always contact Roby Robertson for assistance in finding the right home for you!
