Buying a fixer-upper is a great opportunity compared to buying a move-in ready home. If you do it right, you can save a lot of money and customize the home in ways you hadn’t imagined.
Before buying any property, there are certain factors you need to consider. Learn how to tell if you are getting a good deal on a fixer upper in Savannah in our latest blog!
Learn the Neighborhood
See how the market is doing. Is the property you intend to buy likely to depreciate? How are the other homes in the area performing? Check what comparable homes are selling for, versus what you have to pay for the home and repairs. Whenever you renovate a fixer-upper, there are always unforeseen costs, so you need to be adequately prepared. Be prepared to add 10-20% to your cost estimate.
Be Honest About The Work You Can Do
Your dream home, fixer-upper, needs some work, and you know exactly what needs to be done. Question is, do you know how to do it? We all enjoy a good DIY project, but getting into complicated repairs and renovations without the help of a professional can lead to disaster. If you make a mistake, you could wind up paying twice as much for a professional to fix it! Don’t get sucked into HGTV’s hype! Plan to allow yourself some help in areas that you are not so confident about.
The Real After-Repair Value
Dollar for dollar you aren’t going to get back everything you put in. If you spend $50k on upgrades, your selling price won’t automatically increase by $50k. Whenever you fix up a home with the intent of flipping it, make sure you don’t overdo it! Spending too much money on upgrades that you like, may be a waste of money! Focus on what makes a home livable or not, and make repairs that will increase its value.
A Checklist of the Fundamentals:
You should review these basics when viewing a fixer-upper, or any house on the market. It’s important to note any problems in any of these areas and investigate them further. If you are thinking of making an offer, have the home thoroughly inspected to ensure nothing has been missed.
- The foundation. Do you see cracks or slopes? In that case, walk away.
- The structure. What is holding up the structure? Is it solid and stable? You don’t want to mess with bad structures. The repair costs are likely to exceed the profit on the property.
- The Roof. When was the roof last replaced? Do you see signs of leakage or water damage?
- Windows and doors. Check around the door frames and window ledges for cracks. These are signs of settling and poor foundations.
- Heating/cooling. When systems aren’t in order, repair costs can quickly mount. Take this into account when estimating your purchase price.
- Plumbing. Problems with plumbing can affect the whole house. You should make sure that a small leak is not an indication of bad pipes or plumbing throughout the home
- Electrical. Electrical fixes aren’t as costly as other types of repairs, but you should expect to spend some money. Electrical issues should always be checked as soon as possible to avoid safety hazards.
You should exercise caution when purchasing a fixer-upper in Savannah. Do your research and make sure you know what it will take to turn your fixer-upper into your dream home!