Although the drama of home and garden TV shows is fun to watch, undertaking similar projects is rarely as appealing. So before you decide to buy a home in need of TLC with the idea of making a substantial profit you’re going to want to read this guide.
Tips to Make The Property Profitable
Buying a house that needs cosmetic updates can make financial sense, particularly if you’re handy with a paintbrush, or don’t mind tackling DIY projects in your spare time. The willingness to make a house livable through ongoing TLC can be rewarding if the structure is sound and all systems are in working condition. Unfortunately, it isn’t always as smooth sailing as you see on tv.
Determining What Needs Fixing:
Modern appliances, updated lighting and water-saving fixtures and faucets — even new carpeting and tile — are all items that can be replaced over time as your budget allows. But if the homes existing systems aren’t in working order, you may not be getting a bargain at all.
If you decide to buy a home that needs major improvements try to roll the work into a home improvement loan and, preferably, complete the rehab before you move in. If your intention is to sell the home for a profit you should include the cost of renovation in your cost analysis before you make a purchase.
Get The Property Inspected:
Whether a property is a fixer upper or not you should always get an inspector in to review the property. The inspector will determine the improvements and renovations the property needs. Also, having a qualified inspection can help you negotiate with the owners if the property has some truly atrocious defects.
Homes are priced under market value for a reason. Sometimes the reason has nothing to do with physical problems and everything to do with the seller. Older homes in stable neighborhoods often offer great deals for sellers and buyers alike!
However the best way to find a great deal is to work with an experienced REALTOR® who is familiar with the local market, and can advise you on real estate trends, financing options and great investment opportunities.