Real Estate
When it can be hard to buy a home that is affordable for you, owning a fixer upper starts to look appealing. While the original investment may look easy on the wallet, it’s not always an HGTV experience. Owning a fixer upper is much more than how much work you can do on your own. There are quite a few factors you should consider before taking on a project like this.
Having A Professional Inspect The Fixer Upper
One of the first things you will want to do is have someone do a thorough inspection of the home. If you are purchasing the fixer upper, have it inspected before you close. If you already own it, do it as soon as possible! You need to know what you should expect once you get into the project. If you plan on selling the house, it will likely need to be inspected and any issues will come up at that time. It will be good to know what needs to be done so you can add these things to your project list. These may not be fun and glamorous fixes, but they are what will keep the house together and healthy for you.
Prioritizing Repairs
After you complete inspections, it’s time to decide what you can afford to repair. You may have had big ideas for your fixer upper, but inspections revealed bigger problems. Though it would be amazing to address everything, budgets don’t always allow for this. Keep a prioritized list of everything you need to do and want to do.This will help you easily see how far your budget can take you.
Budgeting For The Surprises
When you make that list, leave room in your budget. Home renovations and fixer uppers are notorious for giving you surprises. Those surprises are also known for being costly. While having an inspector look at the house prior to a purchase can help you avoid a money pit, it can still give you surprises. Don’t max out your budget on the renovation. Leaving budget aside for unseen expenses will help you avoid steering away from your plans.
Loan Types
You do not necessarily need to fund this out of pocket. There are loan programs that can help you complete the renovations, or even work with your purchase loan. If the renovations. Make sure you connect with a bank or lender about your options before diving into a project.
Time Until You Can Sell Your Fixer Upper
Your budget needs to include the cost of selling the fixer upper as well. You will also likely be paying a mortgage payment each month that you are renovating and until it sells. You will also have the costs associated with selling the home such as closing costs and commissions. If you are banking on every dollar of the future sale, it’s good to understand how much of that sale will be going toward other costs.
In The End
When it comes to flipping, it takes the right person with the right amount of patience and tenacity. It takes you being able to take some wins and some losses. Since we are in the home flipping world, we can attest to our love for the industry. But we can also say, it’s not for the faint of heart!
Use ASDM Homes To Sell Your Fixer Upper
Eric with ASDM Homes offers an easier alternative so sell your house fast in San Joaquin County. Cash offers can help you sell your house quickly, for a fair price, without the need for repairs or inspections.
If a cash offer is what’s right for you, Eric with ASDM Homes is here to help! We can give you a fair cash offer, help with all the legalities, and streamline the process to help get your home sold and cash fast! Contact Eric today to find out what you can get for your home and how quickly you can get that cash in hand!
