5 Things To Consider Before Buying A Fixer-Upper Home

The thought of buying your new home on the cheap and being able to truly make it yourown sounds incredibly satisfying if you're the type who enjoys a good project. Planning allthe ways you'll be able to make the home work to your advantage seems like the bestoption. Torelli Realty wants you to know what to consider if this is something you'vethought about. We don't want to deter you from this option but rather make sure you knowthe reality of this home choice before taking a leap of faith.1. Find out about what recent, if any, inspections have been done and ask your agent aboutinspection contingencies. Buying a home even in the nicest condition can come with its ownsurprises down the line. When looking into a fixer upper though, you'll want to know whatneeds to be done right out the gate. ‘Is this a home that will be safe to live in whilerenovating’ is a good question to ask. And here is a tip—consider running a scope down thesewer line looking for tears or blockages. This can be a very costly project, & a preventablestep many do not consider before purchasing.2. Review your finances and get estimates. Even if you think you're financially prepared,you'll want to get estimates done once you've narrowed down your search. Seeing thenumbers on paper will aid in your decisions immensely. Don't forget about permit costs!Tip—add 10% to your project for that “gotta have!” stove.3. Check your schedule. If you're planning on doing most of the renovations yourself, you'llneed plenty of free time to get the home finished. Hopefully, you have some friends andfamily that will be nice enough to help out once in a while, have a beer or two in exchangefor holding drywall.4. Know what skills you have, and what kind of work should be done by a professional.Attempting projects such as electrical or plumbing fixes could end up costing more andtaking longer if not done right the first time. Tip: Get referrals from your agent who mostlikely has a list of go-to people.5. If this is a “flip” property, know, we mean really know what the selling price point willbe—with good calculation, keeping it within a 2% margin of error should be a goal topredict the final price. Do your homework on comparative sales. That means seeing thecompetition that has sold with your own eyes. Take risks, but not so much that you are outof business. And a big tip, keep in mind cost per square foot is not as important as floorplanpopularity. Compare apples to apples!