Unless you're buying a new home, there is always a chance that the house
you're investing in will need a little TLC. It's always a good idea
to understand the counterweights of pros and cons when it comes to investing in
a fixer-upper. On the one hand, a sound investment in a fixer-upper home can yield
a positive return when it comes time to sell it off, not to mention the cost you
save up front when compared to a newer home. On the other hand, however, an uneducated
purchase can leave you stuck in a money pit, causing you more stress than success
and leaving you with empty pockets. But how do you know what to look for?
Let's say that you've found a prime piece of real
estate, and you've got a good feeling this may be the place for you. The
house has some issues, and you're concerned about how much you'll
have to invest in renovations. Is it worth the risk, and if so, how do you know?
It's very unwise to go on hunches when making an investment this large,
so play it smart and turn to professionals. Bring in a home inspector (find here), consult
a contractor or a professional home renovator, and get an informed opinion before
you sign the papers on what you hope will be your dream home.
When you've taken the big plunge and bought your fixer-upper home, the
next step is to, well, fix it up. Assuming you know where the problems lie,
you'll have to come up with a game plan. The last thing you want to do
is to start a project this big without knowing exactly where to start and what
it will take and cost to finish. Too many people have ruined their homes by trying to renovate on their own without the tools and the know-how.
Again, consult the professionals. You can save a lot of money doing it yourself,
but if you don't know what you're doing, you're better off
trusting someone who does it for a living.
Another important part of renovating a fixer upper is to know what works. The
right design and construction can make even the plainest-exterior home look like high end properties on the inside, and that can mean a much higher return to you. Trusting a professional interior decorator is,
again, always a good idea, but if you want to do it yourself, make sure to do
your research. Not only can a properly renovated home look great, but it gives
you a chance to improve the functionality and monthly cost of your home with
investments in efficient heating, appliances, and lighting.
Though there is much to assess before investing in a fixer upper home, with
the right vision, a sound investment plan, and the tools and knowledge to get
the job done, what you earn in the end might just be the home of your dreams.