Are you looking for a home, but your budget is a bit tight? If so, you're likely looking for a fixer-upper so you can make repairs over time and save money on the cost of your home. Before you make an offer on a home that needs some work, here are some things that you should consider to make a purchase that you don't regret.
Can You Handle The Project On Your Own?
One thing you should always consider is what type of work you are capable of doing by yourself. If the house needs a lot of work and you are not handy, you may end up in a situation where you end up paying more money over time due to needing to hire contractors to do the work for you. There are many simple DIY projects that you should be able to handle, such as painting, bathroom remodeling, or even installing new laminate flooring. However, dealing with plumbing issues or foundation repair is likely out of your comfort zone. That's why it helps to make a list of potential projects and know which ones you can handle.
Is The Home Reasonably Priced?
The home may clearly need some help with renovations, but is it reflected in the price of the home? Have your real estate agent perform a comparative market analysis and see what similar homes are selling for in your area. This will give you an idea of what the home could be worth if it was move-in ready, and how much you are saving by fixing it up on your own. Do not assume that a home that needs work is always being sold for a low price.
Do You Plan To Flip The Home?
You should also think about if this is a home that you are willing to flip. Now that you know how much comparable homes are in the area, you can get a better idea of how much profit you could make off the home after all repairs are finished. You could always buy a home that needs some work as a starter home, with the plan to sell it at a profit at a later date and move into a nicer home. Just make sure that you are factoring your purchase cost and repair costs when estimating how much you think you could get for your home. The more repairs you do by yourself, the more potential profit you can make.
For information about single-family homes for sale in your area, contact a real estate agent today.