How Choose the Right Fixer-Upper for You
With so many people looking for the best deal possible, house hunters often consider purchasing a fixer-upper as a means to save some money.
However, picking just the right fixer-upper can be tricky. Choose the wrong house, and you are headed toward a renovation nightmare. Choose the right house, and you are one step closer to owning your dream home.
There are several factors to consider when purchasing a fixer-upper, ranging from the home's location to its renovation needs.
The Right Location
It might be cliché but it is still true. When it comes to smart real estate, the most important factor has not changed: Location! Location! Location! When purchasing a fixer-upper, you want to make sure that all of your hard work will result in a profitable final market value for the home. In order to achieve this goal, the home should be located in a nice neighborhood with other comparable homes that are priced around your target market value.
As you shop for your fixer-upper, make sure that you take a look around the neighborhood. The other homes in the neighborhood should be well-maintained with nice yards. Additionally, you want to pick a neighborhood in which most of the homes are owner-occupied versus rental properties because a home's owner typically will take better care of the residence.
The Right Layout
Unless you are prepared for some heavy-duty remodeling, you want to choose a fixer-upper that already offers the right layout and configuration. When it comes to the best layout for a home, you need to consider not only your preferences but also the preferences of potential home buyers if you are to resell your home one day. Today, people are looking for large kitchens that are open to a family room offering a large space for the family to congregate. Most house hunters are turned off by homes that have bedrooms located at opposite ends of the property, or if a master bedroom is upstairs while the rest of the bedrooms are downstairs.
When it comes to a home's configuration, you should look for a home that has at least three bedrooms and one and a half baths. Ideally, a home with four bedrooms and two baths would be best. While there are people in the market for two-bedroom homes, you are much more likely to sell a three-bedroom home to a person looking for two bedrooms versus selling a two-bedroom home to someone looking for three-bedrooms. In the end, it is all about your home's resale potential.
The Right Project
Before purchasing a fixer-upper, you will need to determine just how handy you want to be. For most home owners, a fixer-upper needing only cosmetic renovations is ideal. You often can find a great deal on a home that is a little rundown but still has good bones. The best fixer-uppers are those that require minor renovations such as repainting the walls; refinishing or replacing the flooring; installing new kitchen cabinets; replacing light fixtures, doors, trim and baseboards; and sprucing up the exterior with some paint and new landscaping.
You also want to select a fixer-upper in need of those renovations that will increase the home's value in the end. Replacing the outdated carpet with hard wood flooring often will result in a profit by increasing the home's value more than the cost of the renovation. However, some fixes might not result in a significant increase in the home's value because they cannot be seen, such as repairs to a home's foundation or roof. While such fixes will make a home more sellable, they often will cost about the same, if not more, than any impact they might have on the home's value.
