Should You Buy A Fixer Upper?

While most homebuyers might shun properties that have evident problems, it might be a great opportunity to buy such a home. However, it is important that you know exactly what you are getting into. While many people prefer to buy newer homes that may throw fewer problems, others find older houses alluring.

Many DIY enthusiasts love the idea of buying a fixer upper as they look forward to the idea of fixing paint, adding new features and creating spaces that will be entirely in sync with their preferences. But this isn’t a decision you can take lightly. You would be spending a significant amount of time, money and effort into renovating the house. So the final outcome needs to be worth all of it.

You also need to ensure that you have a clear idea about exactly what kind of repairs, upgrades, and renovations are required in the fixer upper. Sometimes, all this may work out perfectly for you because you may be able to get an excellent property at a very low price. But as mentioned, before you take the plunge, you need to have a realistic idea about exactly what you are getting into.

If You Are Considering Buying A Fixer Upper, Here Are Some Aspects You Need To Keep In View:

Have A Clear Idea About Costs

Start with all the basic calculations. First, add up all the costs required to renovate the property based on a detailed assessment of the current condition of the house. It’s important that you be very objective while making this assessment. Include everything ranging from materials to labor and more.

The next step is to subtract that amount from the likely market value of a property post renovation. They should be drawn after comparing real estate prices in that neighbourhood. Another 5-10% should be factored in towards unforeseen problems or extras that you decide to add, as well as inflation. What’s left from all of this should be your offer price.

Choose Projects That Will Provide Good Return On Investment

When you are deciding to buy a fixer upper, it is best to choose a house that largely requires aesthetic improvements. For example, floor refinishing, drywall repairs, paint touchups or small carpentry jobs would typically cost less than their return on investment.

Other Things To Keep In View

Some other lucrative improvements include addition of window shutters, new siding, replacement of doors and windows, replacing kitchen cabinets etc. If you find that the house has significant structural damage or deterioration, fixing that can cost a significant amount of money, which might not be lucrative in the long term.

Aside from all of these things, take into account the amount of time you have to supervise any work you need to get done. If you are planning on DIY home improvements, make sure that you have the time to dedicate to these tasks. As long as you make a prudent decision after taking all these aspects into account, buying a fixer upper can prove to be a wise decision

Whether you’re looking to buy or sell in the Kamloops area, for a greater probability of success you need a dedicated professional. I can guide you through the process and be counted on to protect your investment!

Categorised in: Buyers, Kamloops, Real Estate

This post was written by kamloopshomesearchcom