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Preparing to Buy a Fixer-Upper
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 pocketbook! 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 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 silent 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 blueprint when you start rejuvenating the house to its original beauty.
GET ANOTHER EXPERT
A fixer-upper 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. You can also ask the electrician to survey the house and have him tell you what you can do to make it a more energy efficient home.
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. This way, you'll be able to study each photo in full detail. Get a friend to look over the photos with you. 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.
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Selling a Fixer Upper House
If you have considered fixing up and selling property with the intent to sell instead of renting, then here are some invaluable tips that should fall on any ear hoping to make positive income on all properties they plan to sell. The First ImpressionThose that shop around for homes will give you about fifteen minutes for you to impress them. If you aren't able to bring a twinkle in their eyes du. . .