For those who adore old houses — and enjoy working on them — the idea of purchasing a fixer-upper may be irresistible. Before taking the plunge, be certain you have a realistic concept of what you are getting yourself into!
Do the Math
Finding out what you ought to pay to purchase a fixer-upper begins with an easy equation. First off, add the costs up to renovate the home based upon a complete review of the home’s condition. Be tough with the estimate, which ought to involve labor and materials — yours and other's. Then, subtract it from the property's likely marketplace value after renovating, drawn from comparable prices in the community. Next, deduct at the minimum of another 5 – 10% for extras you add, unexpected mishaps, problems that must be handled, and inflation. What is left ought to be your offer.
Choose Projects which Pay
The perfect fixer-uppers include the ones requiring mainly aesthetic improvements — floor refinishing, drywall repairs, paint touchups — which usually cost less than what they return within market value. New light fixtures, window shutters, doors, siding, and updated bathrooms and kitchens also are lucrative improvements.
Be Ready to Roll Your Sleeves Up
Whichever renovation is needed, it usually is more cost-effective as homeowners to pitch in. Fixer-uppers are for those willing to be a do-it-yourselfer, because that may save lots of money and they’d be keep the increase within home value for themselves.