The idea of buying an older property and renovating it into your dream home or a moneymaker is appealing to many people. But with that excitement also comes a lot of potential problems.
It's important that you know what you're getting yourself into. Before taking on a fixer-upper, consider if it's the right type of property for you and what it will actually take to renovate.
Decide What's Right for You
Pros and cons. While a lower sales price, potential for resale profit, and a sense of personal satisfaction are certainly possible, there can also be a lot of unseen costs associated with buying a home that needs repair.
Patience is required. Depending on the size of the renovation, a fixer-upper can take anywhere from a month to more than a year to complete. Be aware that you and your family's lives may be disrupted for a significant amount of time. If this doesn't work for your lifestyle, it's best to think about a different type of property.
Money. Renovations can be very costly. If you won't have much money left over for renovations after your down payment and closing costs, you may want to consider a house you can live in while it's being fixed up. Whatever you decide, remember that there will be extra expenses no matter how carefully you plan.
What to Consider When Looking
Location, location, location. It's the golden rule of real estate and also applies to fixer-uppers. Do your research. Check average home prices and schools in the area. Take a stroll around the neighborhood to see if the homes are well maintained. Buying the worst house on the best block that you can afford can be a great option.
Condition. This can vary widely from a house requiring cosmetic repairs to a total gut rehab. If you want to minimize renovation costs, look for a home that has "good bones" — a solid roof and foundation, natural light, good floor plan, quality construction, and a coherent design.
Layout. Many older homes are chopped up into several rooms and their layout may not work for you. While it is certainly possible to knock down walls and rearrange the floor plan, it can sometimes be expensive or impractical. Keep this in mind when thinking about your renovation budget.
Configuration. Search for houses that have the approximate square feet and number of bedrooms and bathrooms you desire. While it is possible to add these things when renovating, they can really add up, especially if you expand the footprint of a house.
Repairs and Remodeling
Budgeting. When considering a property, a fixer-upper calculator can help you get started with a rough estimate of renovation costs. A reputable contractor can also assist in the process.
Minor renovations. These can include:
Patching and painting walls
Refinishing floors
Laying tile or carpet
Installing light fixtures and switches
Fixing broken windows
Installing new or refacing existing kitchen cabinets
Replacing doors
Painting the exterior
Adding a deck
Major renovations. These can include:
Replacing HVAC systems or adding central air
Fixing foundations
Replacing the roof
Installing new plumbing, sewer lines, or wiring
Replacement windows
Kitchen and bath remodels
Building garages and additions
Financing
Federal Housing Administration offers a 203k loan that allows borrowers to purchase a property while also financing the cost of rehabilitation.
Don't over-improve.
Consider how adjacent houses have been finished. If most have lower-end finishings, it's probably not best to spend your money on granite countertops, copper bathroom fixtures, and marble floors. Your fixer-upper should be in line with — or just slightly above — the standards of homes in your neighborhood.
Purchasing a home is probably one of the biggest decisions you'll ever make. And while it may seem overwhelming, a fixer-upper can be a great way to get good value for your money. Do your homework, talk to professionals you trust, and make a smart, informed decision.
Article submitted by Brennan Purdy of State Farm Insurance
My vision is to be an insurance professional whose actions are driven by keeping the customer's best interest as my primary goal. My staff will treat all my customers in a caring, friendly, and professional manner. My office will provide warm, efficient, and seamless services to our customers at all times. I expect my business to be comprised of knowledgeable, multiple-line customers who see my office as their first and best choice for all their insurance and financial service needs
For more information on these and other home safety tips, stop by my office or visit www.brennanpurdy.com. My office is conveniently located in downtown Bethel. 203-798-7300. 211 Greenwood Avenue , Bethel, CT 06801
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
The Featured Home of the Week is at 125 Norton Road in Easton for $1,349,900. See the virtual tour HERE
Buying or Selling a Home in Fairfield County? Contact us!
If you have a question about buying or selling Real Estate in Fairfield County, and are in need of representation, I invite you to contact me. I know the market like the back of my hand, know marketing inside and out, am a skilled negotiator- and I'd love to be on your side :) - Judy
Search for properties on any of our sites, or get the very best visibility available for your home. Visit us online wherever you like:
www.CThomesAndRealEstate.com www.TheCTrealtyBlog.com www.TheCTRB.com and www.CTfeaturedHomes.com
Email us or call Toll Free (855) GET-JUDY