Things to Expect When Buying a Fixer-Upper for Your First Home
If you are faint of heart, then buying a fixer-upper may not be for you. However, for many first-time homebuyers, it’s a great way to get into the market today. Make sure you are familiar with what it will take to renovate a house and what the buying process will be before jumping in with both feet. Here are some tips that will help you understand the process of what it takes when you buy a fixer-upper.
What to Expect When Buying A Fixer- Upper
In San Diego, the average list price on a fixer-upper home is approximately $729,000. If you search for a home in North Park or South Park, it is anywhere from $700,000- $850,00. Keep these things in mind when you start searching for a fixer-upper in your area.
Basics on Budgeting: Always think of resale when the home is all fixed up. Work backwards and factor in the cost of repairs that it will take for this project. When making an offer on a house, take into consideration how much it will cost to remodel the home and will you recoup your money and some. Renovation loans are something to look into. A single mortgage would cover the remodelling costs making it easier to fund the project.
Pick Your Projects Wisely: When finding a potential fixer-upper in need of home renovations, make sure that you are searching for projects that are more of cosmetics than structural. As a first time home buyer, dealing with structural projects can be overwhelming, and the costs of repairing will add up. Never waive a home inspection. It is essential to have a good home inspector on your side that will help you determine whether remodelling this home will pay off in the long run.
Tackling the Project
Getting in over your head is no fun. Make a list of things that must be done right away and things that you would like to do. Prioritizing will make it less stressful during the process.
Using the Right Tools: The most cost-effective way to tackle a fixer-upper is to do the work yourself, that is, of course, if you are handy and know how to do some of the work. If you’re starting from scratch, it will be well worth investing in the right power tools. Consult a list of essential tools for DIY, such as this one from Fine Homebuilding. A few essentials include a drill, sander, and jigsaw, along with a basic toolbox and ladder.
Start With Structural Changes: If you need to make any structural changes or the exterior needs work, prioritize those projects first. Otherwise, you may end up undoing some of the cosmetic work you’ve already done inside.
What Makes the Most Sense? Even if you have projects that you want to put on the top of your list, focus on what makes the most sense to do first. You may be tempted to rip down the ugly wallpaper that is on the walls, but it may make more sense to install the floors first since you will be moving furniture in; that is of course if you are planning on moving in. Then you can tackle the wallpaper.
Is Your Space Livable? If you are a person that likes to cook your meals, then, you may want to put the kitchen renovation on the top of the list. Then put the next most important project on the list that will make your home livable and less chaotic.
Stay or Sell?
After putting all your love, sweat and tears into this renovation, you may consider keeping this house instead of selling it for a profit. I have seen this happen on many occasions. But if you decide that you prefer to sell, by doing a lot of the work yourself, you have a better chance of making for a profit.
Think about your end goal when buying a house to flip. You must appeal to a big pool of buyers, so have this in mind when you renovate the home. Even though it is challenging to figure it all out before beforehand, make your list before you start. Work with an experienced Realtor that will be able to help you with this process. Buying a fixer-upper can be exciting if you are up to the task.
Photo credit: renovate
If you would like more information on fixer-upper homes for sale in North Park, South Park or any other neighbourhood in San Diego, contact the McT Real Estate Group right away.