It’s not only ugly ducklings that get makeovers. These days, even houses are in need of image renovations. In real estate lingo, fixer-upper is the term used to describe a house in need of remodeling or repair. Buying and selling fixer-uppers can be a sound investment…if you follow our tips below.
Don’t Fall In Love At First Sight
Remember that beauty is in the eye of the beholder. So a house that seems absolutely wonderful to you doesn’t necessarily mean it’s similarly perceived by others. Choose a fixer-upper that appeals to your mind, heart and pockets! Avoid choosing one with a market value that’s equivalent to your total budget. If you do, you’ll have no money left for repair and you might end up with a home that sells lower than its original and expected value.
Remember The 4 R’s
Let’s say that you’ve already chosen a fixer-upper to buy and you’re just waiting for the deal to close. In the meantime, take a tour of the house and try to identify its flaws. Keep the 4 important R’s in mind as you walk from room to room – remodeling, repairs, renovating and refurbishing. Each one is different from another and there’s a chance that you might make use of all of them later on. It’s better to be prepared beforehand so you know how to allocate your budget appropriately.
Get An Expert
Unless you’re a real estate expert yourself, it’s better to hire a qualified individual for a day and ask him which aspects of the house should be repaired or modified in some way. Accompany him from room to room and write down everything he says. Don’t hesitate to ask questions because keeping mum at the wrong time may prove to be a costly mistake later on! It’s very important to be able to get a full structural survey of the house while you’re with your hired expert. The survey shall serve as your guideline or blueprints when you start reinstating the house to its original beauty.
Get Another Expert
An fixer-upper may not benefit from the expert eye of a real estate professional. It must also be looked over by other experts before it can be fully judged as functional and sellable.
Start with an electrician. Ask him if each and every outlet is currently working and if the house has any faulty wiring. If it’s presently without any electricity, ask the electrician how much it would cost to have the house wired. If you’re particularly concerned with the environment, you can also ask the electrician to survey the house and have him tell you what you can do to make it an energy efficient home.
Lastly, get an engineer to view the house. With the trail of disaster left by super hurricanes still printed indelibly in our minds, you can’t blame homeowners if they express concern about the stability and the foundation of the home. Ask the engineer to estimate up to what magnitude on the Richter scale the house is able to survive.
Take Photos Of Every Nook And Cranny
You can never be too sure that you haven’t overlooked anything about the house. And since you can’t bring your investment home, the next best thing to do is take as many photos as you can of each room of the house. Take at least four photos for every room (one for each side). Remember to set the size of photos to its maximum capability. Take an extra memory card just in case you run out of memory. This way, you’ll be able to study each photo in full-blown detail. Get a friend to look over the photos with you because four eyes work better than two.
Check With Your Accountant
The last thing you should do is set up a meeting with your accountant, financial advisor, bank manager or whoever it is that gives you advice about your finances. Explain the present state of the house and leave no stones unturned. Seek their wisdom and ask specifically up to how much you should be willing to spend on the house and how much to sell it for.
Keep these tips in mind and you’ll surely end up with a beautiful swan of a home!
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