Things To Consider When Buying An Old Fixer Upper Home

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A 2017 survey by the National Association of Realtors announced that 51% of buyers found their homes on the internet, and the remaining percentage was through a real estate agent and yard sign or open house.

Posting ads on the website is better but looking for the right real estate websites is the best. For instance, the website offers a wide range of property listings in Birmingham. Different types of homes are available from lowest to highest price. After all, it’s you who decide what kind of house will suit your needs.

However, some buyers tend to look for other perspectives in selecting a property. They prefer the cheapest and old fixer-upper home type. That’s because buying fixer-upper homes can save them money, and it’s an excellent way to get into your dream neighborhood.

In order to get the benefits of a fixer-upper home, some things are needed to consider. Read on the tips below.

  1. Set Your Budget

You can buy a fixer-upper house at the lowest cost, but the renovation process will be more expensive. It’s important to consider other things that include:

  • Down Payment for the home
  • Fee for the renovation process
  • At least 10% of the contingency budget
  • Cost for the contractor

These things should be considered beforehand. You need to be realistic about the actual cost you’ll be willing to make.

Small old fixer-upper house
  1. Location

Look for fixer-uppers that have potentials because not all are advantageous at your point of view. When spotting for the best location, know if it’s located near a busy intersection, next to a school and shops or worst if it’s next to a landfill.

Seek out houses with valuable locations or look for an up-and-coming neighborhood. These are areas that can be beneficial in the long run. Also, do an ocular inspection of the surrounding homes and how they are maintained.

  1. Layout

The best type of fixer-upper that’s worth buying is the one that will appeal most to the buyers. For instance, a three-bedroom with two or more bathrooms is quite impressive. Nevertheless, a four-bedroom is much better since some homebuyers often trade up their three-bedroom spaces to a four.

A house with a lousy layout is more expensive and impractical compared to the better ones. Homebuyers must avoid fixer-upper homes with bedrooms at opposite ends of the house, those two-story houses with master bedroom upstairs and the other rooms downstairs, and consider these things instead when looking at homes that are for sale.

  1. Evaluating Condition

Evaluating the condition of the fixer-upper home is essential when trying to look for one. Remember that the cost of repair and upgrade is another factor in purchasing a property. You need to identify the problems of the house that might need some repairs. Here are some well-known problems that need some quick maintenance:

  • Fixing broken windows
  • Replacing aged doors
  • Changing shelves and light switches
  • Patching walls and painting it again
  • Installing ceiling fans and light fixtures

Expensive upgrades include:

  • Replacing the entire roof
  • Total kitchen or bath remodels
  • Replacing the entire plumbing, sewer lines, and electrical system
  • Strengthening foundations
  • Pouring concrete for driveways or sidewalks

Most of the fixer-upper homes both have minor and major upgrades needed. A smart home buyer tends to balance the cost of these repairs without compromising the quality of the expected renovation.

  1. Inspections for Fixer-Upper Homes

Before deciding to close the deal in a real estate transaction, it’s best to get a credible home inspector to assess the actual cost of repair. You may consider some things to review before buying:

  • Pest Inspection: The reports of pest inspectors determine the areas of concern and recommendations to solve the problem. Consider the contingencies and seller-paid repairs before hiring the pest inspection team.
  • Sewer Line Inspection: It’s essential to check the sewer lines and septic tanks, whether it’s old enough or damaged. If not checked, the emerging problems will be more expensive.
  • Roof Certification: A roof certification at a seller’s expense is an excellent way to determine the age and condition of the materials used in the roof.
  • Engineering Reports: An engineer can assess geological hazards within the area of Consider the landfills nearby and detrimental resale hazards.
  • Home Warranty: It’s best to get a home protection plan in the new home in case malfunction happens. The warranty will cover the cost of damages if something goes wrong. However, not all sellers will shoulder the warranty, but some viewed it as insurance when things break after closing the deal.

 Bottom line

The extent of repairs for fixer-uppers varies, and not all require the same maintenance. One homebuyer may have total renovation costs while the other is just minor. That’s why it’s essential to consider and plan out things before rushing to buy the property.

The tips mentioned above can be your guide to buying a fixer-upper home. Consider your budget, the expertise in assessing the renovation, and the extent of work you’re willing to make. After all, the remodeling process will be worth it with your future home.

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