Purchasing a property is a rather expensive investment to make. However, there is a lot of money to be made in the real estate market, especially if you find a second-hand home with incredible potential. To be successful in this endeavour, you’ll need to be able to see past the wear and tear of an old home.
Whether you’re looking for a run-down property to create the home of your dreams or looking to flip the property to make a profit, this is the article for you. In this blog, we’ll be teaching you seven of the most crucial things to look out for when purchasing your next fixer upper…
Find an Up-and-Coming Neighbourhood
If you don’t mind living in an up-and-coming area, you’ll be able to get much more land for your money. Plus, you’ll get an excellent return upon your initial investment if you secure a property in a location that is increasingly gaining popularity.
Look For Water Damage
Although water damage restoration is possible with the right team of contractors, this process can eat away at your budget. Before you purchase the property, we recommend you get some experts in to evaluate the extent of the damage and whether it is worth your time.
Evaluate the Renovation Costs
Before you close a deal, we recommend that you ask a professional about the costs of your potential renovations. You may envision a number or changes but, if you can’t afford it, you’ll be struggling to complete the project.
Ask About Council Restrictions
Depending on the location of your property and the type of renovations you hope to carry out, you may or may not be required to secure some permits. You can ask local contractors to help you with this part of the renovation, just make sure you agree upon a price beforehand.
Create a Contingency Fund
No matter how well you plan out your renovations, there’s always bound to be a mistake or two along the way. In these scenarios, it’s always best to have a contingency fund that you can rely upon on those rainy days.
Stay Away from Serious Defects
When you’re looking at buying a fixer upper, there will always be plenty of cosmetic defects that you’ll need to deal with. However, if your home has massive structural defects, it’s probably not worth your time.
Don’t Be Afraid to Negotiate
As with all properties in the real estate market, there’s always room for negotiation. Don’t be afraid to negotiate a lower price and snag the best deal possible.
At the end of the day, you’ll need to be incredibly patient and determined with this project. There are bound to be a few unexpected issues along the way, it’s what you make of them that truly counts. Make sure that you are financially and mentally prepared to take on the scope of this project. If you follow through correctly, you’ll be able to reap the benefits.
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