Fixer-uppers are typically priced lower than updated homes, but that does not mean they are automatically better buys. There are several common fixer upper tips and tricks behind the myths that you need to know. Many homeowners view their home improvement projects as an investment, but what can go wrong when you try to flip a house? And how many fixer-upper tips and tricks are true are true?
Here are some common fixer upper myths and truths behind the fixer upper tips and tricks:
Clients Would Never Buy a House That Needed Work
The truth is, no home is without some problems. For instance, the majority of property owners seek professional roofing contractors from time to time owing to the need to undertake roof repairs as the roofing structure may develop problems after using it over an extended period.
Every homeowner wishes they could see the future and plan accordingly. Unfortunately, things like divorce, bankruptcy, or natural disasters happen to people simply trying to make their lives better. If you are granted the opportunity to buy a home at less than market value because of pre-existing problems, why not do it? Will some issues need to be fixed? Most likely.
However, if you can get the price down far enough or fix most or even just one major problem, as well as undertake improvement projects such as installation of gas water heater, then your overall costs will still be much lower than buying new construction. It’s all about what you are willing to tolerate and how much you can afford.
No one likes unexpected problems, but there’s always something that needs fixing. Be brave and take the home if it is within your means! You might find yourself with a solid investment at an unbeatable price.
Fixer-Uppers Don’t Appreciate as Well as New Homes
This is one of the common fixer upper tips and tricks that hinges on the current real estate market trends in most areas, which are that the costs of new construction outpace appreciation. However, that doesn’t mean that all fixer-uppers won’t see their values go up over time. For example, many people want to move into urban centers where space is limited, and land value is high. If you move into the ‘hip’ part of town, your home is going to be worth more. There are other potential benefits as well.
While it may be hard to stomach a home that needs lots of work or money put into it, you will have to ask yourself if the price difference is worth not having the location and space you desire. Sometimes these houses have unique features and services, such as a chainlink fence, fire suppression inspection, a local tree arborist and pool cleaning services that are not found everywhere, which might provide the character desired in a new build anyway. It’s a risk but a calculated one with a potentially high reward if you know what areas to target and how much fixer-uppers appreciate in those areas.
Buyers Must Make Sure Everything Works Before Purchasing Anything
In most cases, some fixer upper tips and tricks may be true: for instance, this may be true. You certainly don’t want a home that has an electrical system or plumbing that needs to be completely replaced before you even move in! However, there are some homes where the fixes needed are cosmetic and can typically wait: for instance, engaging a tree company in stump grinding.
Rooms with a view of a mountain stream or wooded area don’t need the same amenities as those overlooking a busy street. If you have your heart set on one of those rooms, but it doesn’t have central AC or heat, would you buy it if it did? Sometimes, all you need is an open mind and some drapes to cover up what isn’t perfect. Do your research and find out how big of an issue the lack of HVAC is. Often it isn’t that big of a deal and can be worked around.
Buyers Should Assume the Home Will Need Some Work Just to Enjoy a Price Offer
This is another myth in the list of the common fixer upper tips and tricks in the market. Sellers are often skeptical about allowing renovations since doing so can reduce their chances of getting top dollar for their property. They may be even less likely to adjust the asking price, but you can ask about other terms that might work for both parties. For example, if repairs are needed, you could offer to fix them yourself in exchange for a lower purchase price or extra time to complete your financing arrangements.
There are many homes out there where the seller doesn’t care about the price tag because they either don’t plan on living in it for much longer or have already moved into a new, bigger, or improved home. If you find a house that isn’t in a terrible state and has a price tag well below what others have been going at, go for it! The owner may not see any reason to drop their asking price further to accommodate your contingency without getting something extra in return. Talk about numbers with your realtor and come to a mutually beneficial arrangement.
You may, for instance, need to buy a house before the end of the month, hence the need to call an agent frantically trying to request the best roofing company to show you houses in your price range with at least one bedroom more than what you currently have. The only thing that matters, in this case, is getting into a home by your deadline, since the price may not be an issue. The agent can find a ton of homes within your budget, and all of which may be move-in ready without needing cosmetic fixes or appliances brought up to code. This ends up being great for everyone involved!
Buyers Need Tons of Money to Fix Anything
While you do have to be realistic about how much time, effort, and money you’re willing to put into this home, it isn’t always as bad as some think. Some things may need fresh paint, while others may require extensive renovations that are beyond your means.
For instance, if you needed to hire bathtub refinishing companies to get your bathroom up to code, then there’s no reason your budget couldn’t accommodate these costs without giving up the house. Many older homes have beautiful woodwork or other architectural elements that can make a renovation worth it. Just be sure you know what needs fixing before making an offer on the place, so you don’t end up overpaying for something that wasn’t even on your radar!
Home Buyers Should Only Go For Houses That Are Move-in Ready
If you’re set on finding a home that can be moved into immediately, then this may not be the market to play in. Even if your budget allows for it, there are some fixer upper tips and tricks to consider before jumping at just any house because it’s move-up ready.
For one, do you want to continue living where you are now or look elsewhere? Will moving take too much time and energy, since even your current location might need some cosmetic work? Do you have neighbors nearby who will make the move-in process easy or tear it down completely with constant construction or incessant barking dogs? It is alright to put the fixer upper tips and tricks as a must-have requirement, but know what other options are there if moves don’t pan out.
If you do find a move-in-ready location but it’s out of your price range, consider hiring someone to make the updates you need. For example, if all you need to update is the kitchen and bathrooms, it shouldn’t be difficult for any decent contractor who knows more about the fixer upper tips and tricks to look into. There are also companies specializing in only certain types of renovations, so you don’t have to worry about them not having experience with certain projects or materials.
Property Buyers Won’t Feel at Home Unless Remodeling of Everything Is Done
Not all fixer upper tips and tricks are true. This is not always true, because sometimes people want an excuse to give themselves more time before moving into their new house. The last thing you want to do is take three months off of work and stay at a hotel waiting for the contractors to finish up all your renovations!
If you’re set on remodeling, then use this as a huge plus. You can finally put that old couch in the garage to good use, create a room you’ve always wanted, or even get rid of old belongings cluttering up valuable space. Just be sure to consider how much time and money this may cost before getting too excited, because it’s vital to go into these big decisions with caution.
Once Property Owners Have Moved into a House, There Is No Need for Repairs
Knowing common fixer-upper tips and tricks beforehand will help you avoid making regrettable choices when moving to your dream home.
It’s worth mentioning, since some people don’t think about what they are getting into until it’s too late. You’ll always need to budget for repairs after everything is finished and you’re moved in. It’s part of life living in an old house, so make sure you know exactly what you can afford before taking the plunge.
Home Buyers Do Not Want to Live Somewhere That Needs Constant Upkeep
Think about your current home. Does it need all the new appliances, floors, countertops, etc.? If this seems like a lot of work, then maybe houses are not the best idea right now because they require more time than most condos or apartments. If you want to go through all the laborious details of owning a home, this isn’t much of an issue.
Just see it as an opportunity for something new in your life and remember that there are always things you can do yourself to save money. Focus on the positive aspects instead of what needs repairing, so you won’t be discouraged from buying a fixer-upper in the future, even if there’s more work required.
Buyers Should Live Near Family or Friends
If you’re set on staying close to where you currently live, make sure it makes sense financially before making an offer. Many fixer upper tips and tricks need looking into, such as how much commuting would cost, how long it would take, and whether any of your current friends would be interested in the same type of move.
This needs to be a personal decision, so you cannot let others pressure you into anything. If you want to live with your family, go for it but don’t stress if it’s too expensive or doesn’t fit your new lifestyle, because there are always other options available.
You Need Money to Make Money
People like fixer-upper homes because they believe the added renovations will increase the value of the home once it’s sold. While this is not always true, it does give you an edge when you’re negotiating with sellers who think they’re getting more for their listing price because of these upgrades. This also means you should expect to delay reselling your property until these renovations are complete. You’ll likely have to invest money in buying and renovating this home before making a profit on its sale, which might take years.
Not all houses need repairs before they can be sold. Although this might be true in some cases, plenty of real estate agents will work with no upfront costs or commissions. Some websites like Craigslist even allow users to post listings for absolutely free. Additionally, there is the option to include closing costs in your offer when making an offer on a property you’re interested in purchasing.
Again, this may not always be necessary. If a potential buyer is willing to purchase the house as-is, there may be no need to do repairs. On the other hand, if the seller feels that the investment might not be worth it and wants to back out of the sale, a potential buyer can legally force a seller to sell with or without repairs.
Flipping is an extremely risky business. Most people who buy and sell homes do so because they need a place to live or are forced for some reason, such as job relocation. It’s also worth mentioning that houses can often be sold but not necessarily ‘flipped,’ depending on the terms of the agreement.