If you're a DIY-enthusiast in the market for a new home, it may be beneficial to learn how to get a fixer upper. Fixer-uppers have low purchase prices because they require major repairs, whether structural, aesthetic or both.
Fixer-uppers are also a popular choice for those wanting to flip properties for profit in the marketplace. So, how do you go about finding and buying a fixer upper house?
Do your research & plan for renovation costs
The first thing to do when thinking of buying a fixer upper house is determine whether you can actually afford to make the necessary improvements to the home. Create a detailed list of projects, and include estimates for materials and labor. If you need a contractor, get multiple quotes to compare rates.
Check the Federal Housing Administration (FHA)
Regardless of the home's condition, you'll likely need a mortgage. The Federal Housing Administration (FHA) offers different types of rehabilitation or remodeling loans to consider.
With this type of financing, you can both purchase the home and save money in an escrow account for future repairs.
Talk to real estate agents
A real estate agent can help you not only find the right fixer upper home, but offer valuable advice on improvements to prioritize. We may also be able to recommend professionals in our network, such as contractors and home inspectors.
Monitor the market
If you plan to fix-and-flip your project home, it's crucial to keep a close watch on the local market. Consider the amount of money you plan to put into the home compared to the purchase price of similar homes in the area.
This can help you avoid overspending and ensure you place your home for sale at the best possible time.
Is a fixer upper right for you? Keep these tips in mind when beginning your home search, whether you plan to customize your dream home or make a big profit.
About the Author
Raena Everett
Raena has an exceptionally positive outlook on life. She believes every day presents a new and exciting adventure. She also applies this attitude towards her work. She was raised in Bangor, Maine until she moved to Venice in 2011. She graduated from the University of Maine at Orono with a bachelors degree in public management. She has been an entrepreneur her entire life, owning several small businesses in Maine. She contributes her success to her problem solving skills and her commitment to excellent customer service. These skills will easily carry over to her real estate career. Her market knowledge and customer service will provide great service to her real estate clients.
She is currently a Realtor(R) for Coldwell Banker Residential Real Estate in the Venice office.
