Are you going to purchase a fixer upper for your next home or investment? If so consider alot of these before you wind up spending more than you had planed on.
Here are some considerations when making your home buying decision.
When you do buy something that needs repair, some experts would recommend looking for homes that only need a little cosmetic care rather than structural improvement changes or major restorations. Most small repairs can be made with a little elbow grease and a planned budget. Renovations and structural changes have a tendency to grow much larger than anyone anticipates. Costing extra time and money to get the job done.
Additionally, while structural improvements may be required to make a home liveable, cosmetic changes generally have a better return on investment.
When you are considering a home purchase figure out the expenses to bring the property to an acceptable living condition. You will likely want to have the assistance of a home inspector and a real estate agent who has knowledge of the area. The real estate agent can advise you about what other homes in the neighborhood go for, what the schools and property values are like and if the neighborhood is on an upswing.
Be very thorough and estimate on the high end. Include labor and materials.
Knowing the home’s estimated market value once the renovations are complete will then help you know what your potential profit will be.
It is recommend deducting another 5 to 10 percent for extras and unforeseen problems. They always happen if you don’t make room for them.
Once you do the math, you’ll be able to determine what a fair offer is.
Essentially, it’ll be the home’s estimated future worth less the expenses to fix it up.
Getting proffessionals to help you with your labor, materials and estimated value after the renovations are complete will help you make an accurate and fair offer on the home. And always have the home inspected thoroughly so you don’t end up having to make major structural improvements that can eat away at any potential wiggle room or profits.
Owning a fixer upper is a great way to save money on a home purchase and the rewards can be significant. Buy wisely, buy cautiously and use the advice of experts to guide you and things should go very smoothly on all of your real estate transactions in the future.
A Real-Estate agent that you can trust will also be able to answer alot of questions and may be able to show you different homes in the area that need fixing. IF you happen to be looking for a home to purchase in the southern point of Georgian Bay, Ontario. Collingwood Real Estate listings is a wonderful place to begin your search. Not only will you find hundreds of great homes for sale you will have the opportunity to read about the area and the local events that take place all from the same place. Tips and advice on home buying, renovating and even gardening. Enjoy your next purchase with large profits at the end!