Fixer-uppers are homes that need repairs beyond the average seller. They may be difficult to realize, but they can also represent an opportunity for real estate investors. If you are planning to fix up a home, here are some things you should keep in mind.
1) You get what you pay for
Generally speaking, the more you need to spend on fixing something, the less it will cost to buy it new. For example, if all you’re looking for is a functional kitchen sink, any old stainless steel double bowl sink should fit your needs and be within most people’s budget. On the other hand, replacing a working water heater is going to require both time and money as they usually start at around $2000 and can go well over $10,000 depending on size and features.
In addition to saving money, fixing up something can give you a better return on investment. For example, if you buy an old high-end stove with some cosmetic damage and fix it up with all new shiny parts, you just might be able to sell that stove for more than what you would have paid for it brand new.
2) You may want to start off small
It’s always easier to save up money if you enjoy your current living space, even if it is lacking in some way, but there’s nothing wrong with wanting or needing more space as well. Just remember that buying another property requires both time and effort — like most major purchases, the bigger the item is, the harder it will be to get.
3) Location is key
What’s the point of having a giant mansion in the middle of nowhere when you’re going to spend most of your time at work? A fixer-upper near where people live and socialize will appeal to buyers more than a property out in the country. Of course, if a house happens to be next door to a metro station or within walking distance from shopping malls, schools, restaurants, etc., then it’ll make everything much easier without adding too many extra costs like buying/maintaining cars.
4) Do your research
Before purchasing anything — visit Compass for new or used properties — do some background checks on prices and features, especially for larger items like furnaces and water heaters. Don’t just go for the low-budget option, as it may cost you more in the long run. In addition, check reviews from previous customers who have used your intended purchase before, as seeing other people’s experiences (good or bad) will help you decide if this is really something you want/can afford to invest in.
5) How much can DIY actually save?
Yes, hiring a professional is not always necessary, especially when doing small home repairs like light fixtures and drywall holes. However, larger projects like installing new floorboards or kitchen countertops should be left up to professionals with experience and expertise; otherwise, there’s a pretty big risk of making things worse than they already are, and that also means paying more money in the long run.
Of course, there are also numerous benefits to DIY projects in addition to saving money when done right. Not only will you gain knowledge about how things work and what tools are necessary for certain repairs, but it’ll be a much more satisfying experience when you have the power to decide how something gets done by yourself!