A fixer-upper is a house that needs work, but you should realize that every fixer-upper is very different from others. Some fixer-upper homes might be great investments, while others might not be. If you are a person who loves doing home renovations and are ready to take on a new project, buying a fixer-upper could be right for you. As you look for one, here are four key qualities to keep in mind during the process.
Choose a home in a good location
The most important factor of buying any home is its location. A home in a great location will always be much easier to sell in the future and will always hold its value so much more than a house in a poor location. Choosing a fixer-upper located in a desirable area is a vital factor in this decision, so you should always make sure that this is something you analyze in this transaction.
Make sure you have access to funds to use for renovations
Secondly, a fixer-upper gets this title because of its condition. When a house has this label, it means that the home needs work. The question is how much work does it need? The other question is how are you going to pay for the renovations? When buying a home that needs work, you must make sure you have access to funds to make the repairs. If you do not, you might end up stuck in a home that needs a lot of work and be unable to make any of the repairs. There are a lot of ways to get cash for renovations, including home equity loans and personal loans, but you should always have a plan before going through with a deal like this.
Evaluate the appraisal of the house after repairs
Another great step to take is to get the house appraised for the amount it will be worth after the repairs. While it may be hard to get an exact number, an appraiser will be able to give you a good idea about its value after you make the repairs. Knowing this will help you determine how much to pay for the house in its current condition.
Consider your reason for the purchase
Finally, take some time to evaluate why you are doing this. Will it be a worthwhile endeavor? Do you plan on selling it to upgrade, or will you stay living in it? Taking time to evaluate this is always a smart move prior to making an offer.
Fixer-upper homes come in many shapes, sizes, and price ranges. If this is something you are interested in, you should begin your search for these types of homes for sale by contacting a real estate agent.