Fixer-uppers are always in trend, as their price point will always be appealing. Those eager to do renovation and remodeling work can also benefit from the fact that fixer-uppers are cheap and require renovation. Some people even turned this into a business, purchasing houses in need of renovation, fixing them up, and then putting them back on the real estate market. But before you put all your time and energy into a fixer-upper, here’s what you need to remember:
The Best Looking House isn’t the Best Fixer-Upper
If you find a good-looking house, you might initially think that it would be a good investment as you won’t have to do a lot of work. However, unless you sit down and do the math, you wouldn’t know whether it’s a good investment or not. Even if the exterior and interior look good, if it sells for a suspiciously low price, it’s best to look into the reason why it’s going for such a price. Perhaps the foundations are too damaged, and in such a case, you might be at a loss because of repairs.
Make Sure Your DIY Skills are Up to Par
Many real estate investors looking for fixer-uppers are eager to do the repairs on their own. It reduces expenses and increases your profit margin. However, you have to understand that the quality a DIY hobbyist does isn’t always as good as a professional. Be realistic about your skills- you don’t want to spend time and effort doing a DIY project only to later realize you need to hire a professional to do it over. Hire professional roofing contractors for roof issues, since those can be sensitive ones. Hire a plumber, electrician, and other servicemen to make sure all the utilities are working well. Neglecting this aspect can lead to serious losses.
… Or Try Out Simple DIY Projects First
Alternatively, you can do the simpler DIY projects on your own to reduce expenses. Not only are you saving up on money, but you’re also practicing and honing your skills for other future projects. Whatever it is that you’re doing, take it seriously- be it tiling, painting, or landscaping. Eventually, you’ll be significantly skilled at it and your work would merit an increase in property value.
Hire Professionals to Do it For You
We’ve mentioned how it’s sometimes better to hire professionals to do the job for you. And it’s not just when it comes to repairs and renovation. Before you commit to a fixer-upper project, hire a professional contractor to assess the property. They’ll be able to detect defects, both significant and minor, that non-professionals won’t be able to. From shoddy foundations to potentially leaking ceilings, and even whether the electrical system is still good, professional contracts will be able to judge how much your budget would be based on the number of things a property needs repairs with.
Assemble a team of professionals you can contact should you ever need utility repairs or interior upgrades. Having trusted professionals to help you accomplish your project is very useful, as you won’t have to waste time looking for reliable contractors.
Treat this as an Investment
Doing fixer-uppers as a hobby is fine, even if it might be an expensive one. Doing renovation projects and designing homes is fun, so that’s highly understandable. However, if you’re looking to turn in a profit, you don’t want to overspend on repairs and renovation. Even if your idea might seem like it would be fun to pull off, you have to be professional about the whole thing.
Put aesthetic choices and expensive upgrades in the backburner, and prioritize efficiency and accessibility. Instead of spending on visual upgrades, consider putting your resources into value-increasing upgrades, like the flooring, ceilings, kitchen, and bathroom.
Secure Building Permits and Licenses
No matter how much effort you put into your project, if you can get the proper permits and licenses, it can easily fall into ruin. Make sure to utilize the proper channels to acquire building permits, as failing to do so can lead to infractions, fines, and even lawsuits that will ultimately hurt your project. Some banks and real estate companies are less likely to grant loans to fixer-uppers if they don’t adhere to local building codes.
Whether you’re looking to turn a profit or buy a fixer-upper for yourself, this advice is still applicable. These tips are even applicable if you just want to renovate your home. Always remember to be careful when making decisions, as it’s always better to measure twice and cut once.