Thursday, February 18, 2021 / by Madyson Woolhouse
Fixing Up a Fixer Upper
Is it your dream to invest in a home & truly make it your own? Or maybe you just want to try a new project? While purchasing a fixer upper can be super exciting, many people go into renovations without really considering all the factors, which swiftly redirects the process from exciting to stressful. So, how can you make sure you're really ready to dive in to this new journey? Keep reading to find out!
First & foremost: cost analysis!
It's essential to sit down & figure out how much this project will cost, & if it'll be worth it in the end. So, start with a simple equation: add up the costs to renovate (based on a thorough assessment of the condition of the house), then subtract that from the market value after the renovation (from comparable real estate prices in the neighborhood), then deduct at least another 5-10% for extras (emergency fund & inflations), whatever is left should be your offer.
According to This Old House, "the real estate contract [should] include an inspection clause." This is important because the inspection will either make or break the deal.
First & foremost: cost analysis!
It's essential to sit down & figure out how much this project will cost, & if it'll be worth it in the end. So, start with a simple equation: add up the costs to renovate (based on a thorough assessment of the condition of the house), then subtract that from the market value after the renovation (from comparable real estate prices in the neighborhood), then deduct at least another 5-10% for extras (emergency fund & inflations), whatever is left should be your offer.
According to This Old House, "the real estate contract [should] include an inspection clause." This is important because the inspection will either make or break the deal.