4 things to consider when buying a fixer-upper
Category Industry News
Purchasing a fixer-upper is a chance for buyers to create something unique and to their own taste. It is also a popular way of finding an affordable home for first-time buyers. We put together 4 major things to consider before signing on the dotted line.
- Keep an open mind
It's important to keep an open mind when purchasing a fixer upper. Look for potential and try look past shabby, outdated interiors, dirt and clutter, and green or orange walls. If the home is in the right area, is structurally sound and just requires a few simple cosmetic repairs, you could find yourself a real bargain. Remember the 'uglier' the house, the less interest it will gain from other buyers, and less competition means more chance of negotiating a better price with the seller.
- Don't overcapitalize
It is easy to get carried away when renovating, with many home buyers spending way more than they budgeted for at the outset. However, it is important not to overcapitalize as you run the risk of losing money down the line when you ultimately decide to sell. Consider whether the renovation is going to add value or if its an unnecessary expense.
- Avoid Structural Issues
Bring in experienced contractors to assess the home's structure thoroughly before signing on the dotted line. Repairing structural problems such as foundation defects and roofing issues could cost tens of thousands, so unless you have unlimited funds, we advise you continue looking for the right property.
4. Get permission
Many home buyers make the mistake of purchasing a home with plans to renovate or add on down the line. Buyers, particularly those purchasing in sectional-title developments, need to make sure they have the required permission from council and the body corporate to do their desired add-on
Author: Adrienne Hersch Media Team