PURCHASING A FIXER-UPPER
Foreclosure. REO. Fixer-upper. Handyman's special. Needs TLC. It doesn’t matter how you call it, buying a house that needs repairs means that you are signing up for a bit more work than any other home.
Here are a couple of tips if you are thinking to purchase a fixer-upper:
- Make sure to inspect the house carefully and make a list of what need to be done.
- Look for structural issues like foundation cracks, water damage, and problems with rot or termite damage. If there are structural issues, I will advise you to contact a contractor and get an estimate as to the costs of repair.
- Prepare a list of all of the things that require repairs and the estimated cost. Even if you plan on doing the repairs yourself, it is a good idea to use a cost estimate as if a contractor was going to do the work. So, when you do the work yourself, you will come in under-budget. Often, It is usual for repairs to cost more than expected, particularly if the work required is extensive.
- Ask your real-estate agent to provide you with an estimate of the market value of the home as if it were in good condition. With that number and your repairs estimate, you will know what to offer on that fixer-upper.
I specialize in finding undervalued properties that, with some remodeling, can again be loved and appreciated. If you would like some help in your real estate purchase do not hesitate to contact us.
Written by Rodolphe Brun © 2015