8 Tips When Buying A Fixer-Upper

8 Tips When Buying A Fixer-Upper

A fixer-upper can be a great way to save money via renovations, but it’s important to know what you’re getting yourself into before buying one. Here are eight top tips for renovating your very own “fixer-upper.”

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1. Know Your Price Range

Before you even go looking at potential fixers, you need to know how much money you can afford for renovations. It’s best to go looking at fixers with a budget of about $10,000-$20,000 as renovation budgets very quickly skyrocket into the hundreds of thousands if not millions. Estimate an appropriate monthly payment and use that as a base number when going shopping for your next home.

2. Don’t Be Turned Away by Bad Reputation

“What?!” you may be thinking… but hear me out! While the premise of a fixer-upper might seem daunting at first, they can actually save you money and give you more bang for your buck than a house of equal value that isn’t currently in need of renovation. So don’t write off a fixer-upper just because it’s in need of some TLC!

3. Buy the Right Property for the Right Price

There are pros and cons to buying both older houses and newer homes, but with a fixer-upper, you get the benefit of being able to make changes without having to deal with the headache of, for example, dealing with an older house’s historical renovation restrictions. The point here is that you should know before buying how much money you’re willing to spend on repairs and renovations and what kind of property you’d like to buy based on your available budget.

4. Don’t Buy Blindly

Don’t just go looking at houses at random! Research available properties thoroughly by using websites to identify the value of a property. Visit open houses in your area that catch your eye, or drive around areas you’re interested in living in for a more immersive experience. If possible, bring along a contractor friend when going out house-hunting. They’ll know how to fit insulation or install a vapor barrier under the house if needed.

5. Don’t Forget to Haggle (or Get an Appraisal)

Haggling is not dead, and it shouldn’t be! I’m sure you’ve haggled for clothes or other low-value items before, so why shouldn’t your house be worth haggling over? Doing some research on the property you want to buy and checking out your local market can help you determine the appropriate price of a property. Don’t know how much your house is worth? Your real estate agent should be more than happy to provide an appraisal for free.

6. Renovations Need Patience

Renovations will take time, especially if you’re doing some of the work yourself. Make sure you budget your time accordingly before buying a fixer-upper, and if possible, arrange renovation dates to fit in with any holidays or family gatherings, so you don’t have to worry about staying late at work or missing important events.

7. Know How You’ll Fund Renovations

There are many different ways to fund renovations, but make sure you know how you’ll be paying for them before starting the renovation process. For example, it might be more beneficial to pay for your renovations with a home equity loan instead of an interest-bearing credit card.

8. Work With What You’ve Got

This is also relevant when buying a property that isn’t necessarily a fixer-upper, but when you buy a house in need of renovations, try to stick with what you can. This means that instead of replacing ancient appliances and fixtures that could cost thousands of dollars, find cheap alternatives or look for replacements at thrift stores and yard sales.

Tia, and TipsfromTia.com  is trying to keep you looking good and
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