If you are in the market for a home and would like to get a deal, a fixer upper is often a good option to consider. Homes needing work have become an increasingly popular option for buyers looking to save a little money in exchange for putting in a little work. Many buyers seek out foreclosures, short sales and estate sales in their quest for a fixer upper. While these types of purchases can be a bit more involved, the homes are typically discounted to reflect the extra challenges that they may present.
If you are looking to save some money and invest in a property that needs some work, read our five tips for buying a fixer upper:
Experienced agent: When picking a real estate agent to represent you, find one who has experience handling fixer upper deals. The benefit of having an experienced agent who has closed on fixer upper sales before will help make the process simpler. Contact us today to schedule an appointment with one of our agents who specialize in finding distressed properties.
Secure a renovation loan: If you plan on financing your purchase, a renovation loan is recommended. A renovation loan may help you pay for simple jobs or more complex remodeling to renovate your home. The FHA 203(k) Renovation Loan allows you to purchase or refinance your primary home and renovate it — all with one convenient loan. There are also conventional renovation loan products that will allow you to finance the purchase and renovation costs within one loan.
Get multiple estimates from contractors: Buyers considering a fixer-upper should make sure to get multiple estimates from qualified tradespeople to determine just how much they’ll have to spend on the upgrades before they can move in. Getting more than one estimate provides a more reliable approach and can give the buyer a good idea of the investment they will need to make to renovate the property.
Professional home inspection: A home inspection is important any time you purchase a home, and especially when you are considering a fixer upper. The inspection will give you an idea of how much money you might eventually have to spend in getting the house move-in ready. It should also reduce the number of surprises you have once you begin the construction process.
Know your price: There is often serious competition when buying fixer uppers and it is important to offer a realistic price that fits your budget. Fixer uppers often get multiple offers, and you want to make sure you compete, but don’t get carried away and over pay for a home that will require additional investment.
If you are in the market for a good deal and don’t mind rolling up your sleeves and putting in some sweat equity, check out our list of distressed properties.
Contact us today to set up a free consultation and learn about some exciting pre-market opportunities to find a fixer upper.