Buying a fixer-upper house is becoming increasingly popular, especially in today’s economy. For many people, the only possible way to have the desired space with a manageable cost is to buy a fixer-upper house and renovate it over time. Buying this type of house comes with certain responsibilities and many aspects of buying and renovating have to be taken into account. Here’s how you can purchase and renovate a fixer-upper house to your tastes.
Consult With a Real Estate Agent
If this is your first time buying a house, especially a fixer-upper, you should consider consulting with a real estate agent. They are professionals in any type of buying and renting space, and they will help you find the best house for the price you want.
An agent can advise you on the state of the neighbourhood and property development. They can also give you information on all the factors that will have an effect on the value of your home after the renovation.
Find a Fixer-Upper
The most important factor when buying a fixer-upper is the price of the house. You want it to give you the most profit when it’s renovated. The houses that are best for flipping getting the best price are foreclosed houses.
Just make sure you look for houses that have signs and descriptions where the owner is willing to negotiate, or they need to sell the house. This means that you can talk the price down, and get an even better deal.
How to Save Money
It’s very easy to spend a lot more money than you intended while renovating your house, so you should always keep your finances in check. Nonetheless, home reconstructions and remodelling are necessary to resell the house for the best price. Make a spreadsheet with the estimated costs of renovation and next to it write the actual cost of the materials and repairs.
This way you will easily see if you are still on budget. Keep an eye out for deals and sales to get the most out of your purchases without breaking the bank. If you have the skills and equipment, try to DIY part of your home. This is an easy way to save a lot of money when remodelling. Even the small parts where you save a bit of money can add up in the end. Things like painting, tiling, and cabinet installations aren’t too difficult to handle on your own, but they pay off.
Estimate the Cost of Renovation
Finding a fixer-upper and getting the best turnaround consists of 3 aspects: Initial purchase price, cost of renovation, and sales price. Naturally, the purchase price needs to be as low as possible.
It’s very common that the first-time buyers pay a lot more than they should, so don’t rush into the process. Instead of fawning over the first house you see, consider all the other ones available for purchase. Check out as many houses as possible so that you can get a good idea of your options.
See if you can hire an inspector to check out the house and give you an estimate of the cost of renovation. If it’s profitable, go for it. To get a good and realistic sales price when buying a fixer-upper, you should consult a real estate agent. Preferably, find one that has experience in house-flipping and sales.
Getting a fixer-upper house isn’t as simple as it might seem. It requires lots of planning and forethought just to find the house you need. Then, getting down to fixing and improving it becomes your priority. This is even more of a challenge. However, there‘s a reason why this has become a pretty popular way for people to make their dream home. It‘s an efficient and profitable venture that will either leave you with the home of your dreams, or it will make you slightly richer. Either way, you can guarantee that you won‘t be dissatisfied with the results.
SmartReno can help you find the right contractor for your Interior renovation project