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7 Things to Consider Before Buying a Fixer-Upper
There are many considerations to take when purchasing a fixer-upper. This guide from Kruper Flooring & Design is designed to help you, a first-time homebuyer, understand the process, what type of home to look for, and which repair projects to tackle first.
1. Know Why You Are Buying
Suppose you're buying a property to turn into a vacation rental. In that case, you'll want to pick a popular tourist location and ensure the property can comfortably sleep a group. If you're buying an investment property to fix and flip or rent out, you'll want to find a neighborhood that is up-and-coming but still affordable, so you can maximize your profits.
Choosing to get into the real estate business means that, while you are completing the work on the house, you will also want to get your business affairs in order. This includes incorporating and getting a unique tax ID number or EIN (Employer Identification Number). These you can do through an online formation service to claim the proper tax deductions.
2. Determine Your Finances
The first step is to get pre-approved for a mortgage. This will give you an idea of how much money you'll be able to borrow and what kind of interest rate you can expect. It's also a good idea to understand the repair costs for the type of home that interests you.
3. Choose the Right Home
Not all fixer-uppers are created equal. You'll want to consider the location, condition of the property, and the repairs it will need. A home in a good location and doesn't need major structural work will be easier (and less expensive) to fix overall.
You should know that when buying a home warranty after closing, it will lessen the cost for repairs or replacement of many of the appliances and systems like the HVAC and plumbing after you move into your new digs. You can buy a home warranty at any time, but many people choose to do so right away, as breakdowns never happen on schedule. This is especially important if an item has lived beyond the manufacturer’s warranty.
4. Prioritize Projects
Once you've purchased your DIY house, you must prioritize your project list. One way to prioritize is to choose projects that will improve your home's value the most. For example, as Opendoor points out, painting the walls in the various rooms will add value to your home. You can also consider upgrading your current kitchen appliances to appeal to prospective buyers.
You should prioritize projects necessary for safety or essential for your home's functioning. For example, fixing a leaky roof should be high on your list. Similarly, addressing electrical problems is important, as faulty wiring can be a fire hazard.
5. Hiring Plumbers
It is best to leave specialty jobs, like plumbing, to the professionals. Hiring a professional plumber for any plumbing concerns will ensure the job is done right, saving you money in the long run.
When looking to hire a plumber, it's important to do your research. You can get recommendations from friends or search online for plumbing companies and read their reviews. Once you've found a few potential candidates, get quotes and ask about their experience with similar projects. Sometimes, when you contact the plumber directly, they can give you discounts or credits for their services.
6. Hiring Flooring Pros
One of the first and more common projects that need completed for a fixer-upper’s livability is flooring. And as Tourethio News Spot notes, hiring a professional to get the job done right is worth every penny. Not only is convenience and speed of installation big factors, but so is better preparation and, usually, a guarantee of work completed. Reach out to Kruper Flooring & Design for your flooring needs.
7. Getting to Work
Calmar's housing market is full of opportunities for those who are willing to put in the work. Be sure to know your purpose for purchasing the property, get your business paperwork in order, prioritize your projects, and be willing to hire a professional plumber to take a look at your house. With careful planning and a bit of elbow grease, you can turn your fixer-upper into the home of your dreams.
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