5 Things to Consider Before You Buy a Fixer Upper in Orange County

Once you’ve decided whether your goal is to buy a fixer upper or a new home, you need to carefully evaluate the market. Not all that shines is gold. And not all fixer-uppers are created equal.Especially in the areas surrounding Costa Mesa and Huntington Beach, where fixer-uppers are few and rare, it’s easy to get excited when something comes on the market. But being emotional can lead you into a trap. So stay rational and always seek for the help of an expert eye. When a real gem comes on the market, you’ll be ready to score a fantastic deal!Here are the 5 things to consider before you buy a fixer upper in Orange County:1. Find the Right Location. No matter how perfect the renovation, if your home is in a bad part of town, buyers won’t knock on your door when it’s time to sell it. Selecting areas with quiet yet well connected streets, good schools, nice shopping malls and a healthy market growth is the first step in the right direction toward making a good investment.2. Look at the Structure. Before you even see the inside, determine if the home has good bones. Look for houses with a nice layout: large windows, high ceilings and custom woodwork are a great starting point to add on your personal fixes. Make sure the floor plan is easily convertible into open spaces and functional rooms. And, here’s a pro tip: doors that aren’t closing right, floors that aren't level and long cracks on the wall could be signs of a foundation in bad shape.3. Find an Expert Eye to Trust. Before you invest your life savings into a fixer upper, talk with an experienced real estate agent. A true professional, that knows the area well, will help you distinguish a truly profitable deal from a money sucker.They will help you negotiate the best price for the home that’s worth your money. And they’ll direct you to a different home when the one you are looking at needs significant structural improvements that would end up reducing the profit margins of your investment.4. Invest in a Good Inspector: The eye of an expert can see those ‘hidden expenses’ that are usually ‘invisible’ but can easily increase the cost of the renovation. Bad foundation, outdated plumbing, electrical system overhauls or extensive roof and wall work are some costly expenses that hardly ever increase the value of the house.Especially when looking at an old house, make sure to find a professional home inspection service with competent and knowledgeable supervisors. Follow them around the house and ask questions while they perform the inspection: direct experience teaches you way more than what you can read on a report.5. Estimate the Costs: After a thorough assessment of the conditions of the house, add up the costs to renovate it, making sure to include materials and labor. Either find a friendly builder who will guide you through the process or ask individual specialists for a specific quote.Add up the expenses and subtract the total from the value the home is likely to have after the renovation (you can estimate it based on the real estate prices of the neighborhood with similar footage and floor plan). Deduct another 5-10% for extras and unexpected problems. What's left should be higher than the price you paid for the house in the beginning.At Torelli Realty we’ve been researching each and every area of Costa Mesa, Huntington Beach, Irvine and Newport Beach and we can help you selecting the best locations, estimate the renovation costs and put you in touch with trusted experts that can transform your property into a dream home!Call us at 714-540-7355 or email us at valerie@torellirealty.com Your ‘Fixer Upper Adventure’ can start today!!