Wikipedia defines a fixer-upper as a “real estate property that will require maintenance or work, though it can be usually lived in as is.” If you’re in love with old homes, the idea can be irresistible.
Purchase a home in a good neighborhood at a lower price
Increase the net worth of your investment
Here are our suggestions:
1. Do the math first. Add up the expected expenses of renovation, accurately reflecting the cost of materials and labor. Then subtract the expected value.
Experts from the television show, “This Old House,” recommend adding another five to ten percent to your anticipated costs. This allows room for unexpected problems and extras you may decide to add.
2. Be cautious with the type of renovations you decide to take on. Internal, unseen upgrades to plumbing and the electrical system rarely cause the value of the home to increase.
3. Look for easy fixer-uppers. Cosmetic improvements to a home can often give the best return. Painting, drywall, fixture upgrades and floor refinishing are improvements that can show a return on the value of your home.
4. Don’t over improve your home. In order to have maximum resale value you want to keep your home’s over-all value within five to ten percent of the median price of homes in your neighborhood.
5. After making the deposit and finishing all of the financial transactions involved in purchasing your home, cash flow may be tight. You may want to consider using your credit cards or obtaining a loan. Loan options include home equity loans or a renovation loan tied to your mortgage.
Is a fixer-upper right for you? Rolling up your sleeves and patiently dealing with renovations isn’t for everyone. There are gorgeous old homes throughout the Valley. Big Bear Lake has its share of old cabins along both the lakefront and in the surrounding hills. Big Bear City is known for old homes built by Guy Maltby. He’s famous for half rounded wood sidings and gigantic rock fireplaces.
Call your Big Bear real estate agent to view valley-wide options.
More About Fixer-uppers;
- Buying A Fixer-Upper: Are You Ready For The Work – The Benefits: The benefits of purchasing a fixer-upper are obvious. The price is usually right, and if the seller wants a quick sale because of decreased interest in the home, you may be able to negotiate a really great price.
- Avoiding Pitfalls When Buying A Fixer-Upper Home | Discovery Bay … – If you are going to be purchasing a fixer-upper for the first time or if it’s going to be for your own home and not a flip to make money you may or may not be familiar with which repairs are going to be considered easy fixes and …
- 7 Things to Consider When Purchasing a Fixer-upper Home – 7 Things to Consider When Purchasing a Fixer-upper Home. January 12th, 2012 // 9:09 am @ Wade. For some reason consumers like to think that because a home is considered “distressed” or has the words short sale and foreclosure in the …