3 Things to Remember Before Buying a Fixer Upper in the Midwest
Whether you buy in Ohio or Illinois, there are three key things you should consider before you sign the contract for a mortgage on a house that needs a little attention and care. Buying a fixer-upper is an excellent way to make some money investing in real estate. However, choosing the wrong upgrades, buying properties without inspection, or going too far with the renovations can sink the budget and end up costing you money. In this post, we talk about three major things you should think about if you are considering buying a home that needs repairs.
Cost, time, and worth
How much do you want to pay for upgrades and repairs to your new home? Are you going to keep the house, or do you plan to flip it? If you only want to spend a few thousand dollars for repairs, then going with a house that only needs cosmetic changes is crucial to staying on track. If you are not afraid of taking down some walls or adding a half bath and you have the funds, then a full fixer-upper could be just for you.
Just like money, your time has a limit. How long can you invest in working on the house? Are you going to live in the home while you work on the repairs? Is the home livable? Do you understand the permit process or have a contractor you can trust to get the local approval for repairs? There are many considerations for your time when you take on a fixer upper. Budgeting your time along with other important things in your life is critical if you are going to come out of the project with profits and little stress.
Kitchens and bathrooms add the most value and give you the highest return on investment. You can improve small areas like installing a pedestal sink, adding a mosaic border, or upgrading the plumbing to add value to your house. Experts suggest staying within a ten to fifteen percent range of comparable homes in the area.
Use qualified specialists for home inspections
Using these experts lets you find out the exact condition of the house before you buy it. Pay special attention to foundations and major services like plumbing and electrical systems. Any signs of problems can lead to potentially disastrous repairs and costly fixes. Buyers do not see these fixes, so they are likely to discount the massive cost you invest. A qualified home inspection firm will answer any questions you have about houses in contention.
Possible contract services you may need
Older homes can have pests or damage from previous infestations. You can ask the home inspector if there are any obvious signs of damage or infestations while he or she is inspecting the home. Calling a pest control expert in Chicago to check the home for vulnerabilities before you move in is an excellent idea when you are buying a home in disrepair.
Speciality repairs for plumbing, electrical, or gas work is better left to the professionals for several reasons. First, these professionals are licensed and trained to perform repairs that meet local and state building codes. Second, these repairs will go faster with someone who has the experience and everyday working knowledge of the system. Finally, you will get a warranty with an expert.
Lining up funding is another consideration says experts
This Old House offers a bonus tip for investors looking to purchase fixer-uppers. Securing funding for the repairs is vital. Having an emergency fund is an important way you can prepare for buying a house that needs repairs.
Do you want to invest in a fixer-upper? Use our top tips to avoid costly oversights. When in doubt, count on reputable experts to lend advice. Your real estate agent and the home inspector can be a valuable source of knowledge when considering home improvement projects.
