Buying an old fixer-upper home with the intention of updating it can be a worthy and satisfying pursuit. However, we want you to make sure that you don’t get yourself into a money pit. Here are some crucial details to consider when buying a fixer upper.
Do your Research
A crucial first step to buying a fixer upper is research. And it’s not a step to ever skip. Before seeing a potential property, try to learn as much as you can about the house, the neighborhood, and the community. Search the town’s name on social media to see what other people are saying about it. Check out any news that mentions that area. Do an image search of the facade and address to see if it pops up in any other posts. Learn about the style of the house and what might be the most common issues and benefits.
If you are not a home expert, then going to see a fixer upper can make you feel as though you are going into a gunfight with a sword. Make sure that you ask all of your questions when you are touring the property. Also, hire experts to inspect the home before you get to the offer stage.
Identify your Red Lines
Take the time to understand your (and your family’s) red lines, those things that you just can’t compromise. Make a list of them. Fixer uppers tend to be very big risks. And here may be moments when you would move in anywhere just to stop the pain of having to keep looking for a home. But hold true to your red lines, and you will be grateful later.
It may be that you would never live in a particular area because the school district isn’t very good, but there may be a private school nearby that would fit in your budget. Establishing lines upfront is the best way for you to improve communication with your family and realtor. It also makes it easier for you to ask more serious questions about each property.
Estimate the Cost of a Renovation
One of the biggest deciding factors when it comes to a renovation is the cost. You have to do some work to find out how much the essential improvements are going to cost. You need a finger-in-the-air estimate so you can generate a ballpark figure from this. There are home improvement resources that have general price ranges for most every type of home improvement. I often check out Home Advisor to keep tabs on their cost guide around the country. It’s helpful to have a general idea of the overall cost of renovation before buying the fixer upper.
Get a Survey Done
Paying for a building survey and a structural survey of an old fixer upper can be a good idea. Sure, it will cost you a lot of money, but a house is a bigger investment. Sellers may have knowingly or unknowingly hid issues like cracks in foundation or walls and may also have painted over other issues, too.
If you are in the property business and you plan to fix up a lot of properties, consider using a drone. DJI drones can be a good choice as they give you the chance to get a solid overview of the entire property.
Work out What you Can Compromise On
Many renovations end up going over budget. Ask for three estimates on every project, and read all of the fine print. Some contractors may have allowances for certain items and some may note that the price will change as materials prices change. Not having a full picture of the financial investment when buying a fixer upper to remodel it will surely lead to many budget challenges.
There may come a time when you just need to compromise, so make sure that you give this some thought. It’s important to know which features can be done with lesser quality or fewer details. You don’t need just need a plan B sometimes. You may need a plan C and D as well to get the result you want.
Decide Who is Going to Live on the Property
Living in a property being renovated is not easy, especially if you are having your kitchen or your bathroom done. Making food is possible if you make a DIY kitchen with a microwave and hot plate. But it’s a huge workaround, even just for a few weeks. If you work from home then you may find that at times, the construction noise is unbearable. It’s important to have a Plan B and C when trying to live and work-from-home during a renovation.
Plan for the Unexpected
Another thing you have to do is plan and prepare for the unexpected. As difficult as it is, you have to give some thought to what you’d do if you ran out of money completely. If you don’t run out but are struggling financially, it is difficult to get the result you want out of the home. One way for you to work around this would be for you to give some thought to the high-and low-priority jobs.
A functioning house may be the first phase of the project, and then the finishes and decor may need to wait until there are funds available.
Oh, and don’t forget to find time to laugh and enjoy the process. There are a lot of surprises along the way when buying a fixer upper, as no house was ever built perfect and no house is immune to the affects of time and weather. Keep reminding yourself why you loved the house, and check out these tips for working with your significant other to stay sane throughout the remodeling adventure.
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