The Basics of Finding A Fixer-Upper
When I was starting my search for a fixer-upper I worked with many people to learn the things that I did not know. The most important person was a realtor who was also someone who had renovated properties. They were able to provide accurate cost estimates and recommendations for how extensive the renovation should be without over-improving for the neighborhood. Not every agent has this specific type of experience so be willing to meet with a few (or more) to find the right fit for you.
Next, consider these important points when looking for a fixer-upper:
1. Decide if you are looking for a home that needs cosmetic updates or a complete overhaul
There is a difference between changing out some flooring and paint versus removing walls and installing an entire kitchen or bath. If you are going the overhaul route having a contractor walk through the house with you and provide an estimate can give you an idea of costs. Also, know that many times there are surprises that come along with large projects so including a 15-20 percent contingency may be something to consider.
2. Know your budget
If you are planning to do any improvements that may impact the amount that you will spend on the home. Cosmetic improvements while less than many projects can still add up. Knowing what you are willing or able to take on and what you will need to hire for is important. Also part of the budget is materials. Scoping out resources and having an idea of what those items will cost is a great way to save money.
3. Hire a home inspector
Homes can be secretive and that’s where a good inspection can be valuable. Identifying areas of concern or items that may not have been at the top of your list can help you make an educated and informed decision about the home. Just a note, a home inspection is not 100% absolute so if there is an area of concern that the home inspection discovers ( i.e. electrical or foundation) it may be worth bringing in someone who is an expert in that field to further investigate.
4. Speak with your lender about different types of loans
An experienced and knowledgeable lender will be able to walk you through the various loan options and which may be the best fit for your situation. There may be down payment considerations, higher fees, and longer timelines for closing due to the increased complexity of the loans. You should also be prepared to provide a scope of work for the lender and an appraisal based upon the improved value of the home. All of these steps are designed to make sure that the project and repairs result in the most desirable outcome for the borrower and the lender.
Armed with these steps you are well on your way to finding your own fixer-upper.
Do you have more questions about buying your first fixer-upper? Click here to Get my {FREE} Fixer Upper Checklist
Happy Hunting!
Amber
Love before and afters?
Follow us on IG @thresholdhomesmn and FB @thresholdhomesmn to see the projects we’re working on and for more ideas on renovating &restoring fixer-uppers!
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