Things to Know Before Buying a Fixer-Upper

Making profit out of a fixer-upper by buying it cheap and selling it for a high price is the ideal scenario. But that’s not always the case in every situation. When done right, flipping a house becomes a worthwhile experience.
Don’t buy an ugly house and think it’s the best option yet. Have a game plan by learning the basics of the trade. Know the things you need to know when buying a fixer-upper home by reading on.
Why buy a fixer-upper? and How to build your own house team?

Common Reasons Why People Want to Purchase a Home

☑️ Maximize the chances of earning big Fixer-uppers are often owned by people who are undergoing financial difficulties after all. They cope with it by selling their property. Most of these houses are bought as is. There will be no home improvements or whatsoever to try to up the selling price. That’s why buying properties like these need proper knowledge to be sure.

☑️ A strong desire to turn a home exactly into what one wants. There’s no need for home improvement care of the seller since you want to do them yourself.
☑️ Home renovation is the integral goal of your savings
☑️ House flipping is basically for your business
☑️ You have a family member with relevant construction experience enough to do the required house improvements.

In addition, make a detailed purchase and renovation plan too. Like any other decisions in life, you need to tailor a plan that suits your capability as a buyer of a fixer-upper.

You Might be Any of the following as a Buyer

 A decade worth of experience in the home renovation or the exact opposite
 Ample cash to spend or the exact opposite
 A high tolerance for risk or just riding the edge whichever is your current situation, decide about:
 What you really want in a house
 What are you willing to do to get it

When you’ve pointed out your exact profile as a buyer, it will be easier to look at each
potential property along the home buying process. Carefully weigh your available:
 Money
 Time
 Effort
Weigh all those three against your expectations, wants, and game plan.
Understand your limitations. Find a contractor that can pull necessary permits. Why? Having a contractor that takes short cuts will only cost you your time, effort, and money. Not getting building permits for the required work will have negative effects in the future. So finding a competent contractor should be on top of your list before you buy a fixer-upper property.

Find the right property according to your goals. Most buyers on the hunt for fixer-upper properties think that a house that needs lots of work can make a good investment. Well, not necessarily. So, introspect about your goals.

Ask Yourself the Right Questions

 Do you want to flip a home and sell it for profit?
 Do you want to live there long-term?
When you finally know what your goal is, make sure to find the right realtor that can walk you through the right path. Your agent will ensure that you only make offers on properties that are within your financial limitations and justify your home buying plans.

Consider the Home’s Location

When you’re done with all the renovations, the house is never going anywhere. If your location isn’t ideal, then its value won’t be as high as it could be. Don’t waste your time flipping a home that doesn’t sit in a plausible spot.
 Crime rate

 Nearby schools
 Transportation availability and so on

Understand the renovation costs of a property. Go into the nitty-gritty details of the house renovation needs. In this aspect, you need a realtor that’s not only around just for the sake of it. Your realtor is in charge of making you understand how the prospect property is doing relevant to its surrounding market. If you got the right agent, there’s no way you’ll be blindsided by the estimate total cost of renovations.
Hold a thorough professional inspection when purchasing fixer-upper houses. For those who have no thorough background in all aspects of construction, having a professional home inspection is the best way to go. Even when you’re not going for a fixer-upper, these inspections are still necessary.

The Inspection Looks Into the Following

 Kitchen
 Decks
 Steps
 Foundation
 Roof
 Electrical
 Plumbing
 Sewer
 HVAC
 Driveway
 Bathrooms
If you want to be extra thorough with the inspection and you have the cash to spare, then the following is also advisable too:
 Check sewer lines or septic system
 Deal with lead paint
 Pest inspection
 Radon testing
 Check on the well
 Make sure there is no mold
 Thermal Imaging
The worst thing a buyer can face after sealing the deal is discovering problems that aren’t visible to the naked eye. Look into different financing options for a fixer-upper. Even first time home buyers can avail of various mortgage loans.

Programs Can Help You Purchase a Home that Needs Various Renovations

 Freddie Mac’s CHOICE Renovation Mortgage
 Fannie Mae’s Home Style Loan
 FHA 203(k) loans
 VA renovation loan
Your realtor must be able to guide you through these various lending options.
Takeaways while the idea of flipping a fixer-upper to make a profit is great, this home buying adventure isn’t for everyone. Run-down properties need a serious amount of cash, time, and effort. If you think you’ve got much of those to spare, then contact a local buyer’s agent now and see where your goals lead you.

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Top 5 Things To Know When Flipping Your First House – by Kyle Hiscock

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