Midway Real Estate

If you’ve ever drooled over a spiffy little Victorian or fabulous Cape Cod home but didn’t have the funds to buy an already restored property, then you may be thinking about picking up a fixer upper. Fixer uppers seem to evoke two main responses in potential buyers, that of total optimism or that of complete terror. However, if you proceed cautiously and keep yourself firmly in the realm of realistic expectations then you can actually come through the experience relatively unscathed with a fabulous house to live in.

Many of the eternal optimists go into the whole adventure only thinking about the pros of the situation. “Houses that need work are cheaper, and I can make a lot of money fixing up a cheap house and then reselling it because upgrades will make the house worth more”. Pessimists look at the whole experience as a large hole in the ground that you throw money into while you live years in a house full of drywall dust. Interestingly enough, both of these perspectives can be right but you can get the best of the situation if you go into the project logically and rationally.

Homes that need work do cost less, but they cost less for good reason. Sometimes they’re not reduced as much as they should be, considering how much work they require. Don’t buy any fixer upper without having a thorough inspection done so that you know exactly where you stand. Be aware that some problems may not come to light until after you start fixing things up.

Before buying a ‘diamond in the rough’ consider the neighborhood. If the neighborhood is unlikely to appreciate to a level where you could get a good price for your home, then it may not be worthwhile to fix up a house there. The age old adage of “location, location, location” certainly applies here.

While it is true that upgrades and repairs certainly make your house more livable, some of them do not make it worth more. Kitchen renovations and additional bathrooms are generally sure fire ways to add value; ask your agent what sort of things buyers are looking for if you need ideas of what will sell. Be sure also to look into government grants for energy efficient upgrades that can be made.

Take care to get recommendations for contractors if you need to use one. Sometimes contractors can prove to be unreliable or less than spectacular; a pricey contractor can prove to be cheaper in the long run if they do the job right the first time. Get your contractor estimates before you buy and be sure to take them into account in your offer.

Be prepared to work on one area of your home at a time if you’re going to live in it while it’s renovated. Some homes require renovations that take a long time. As well, some neighbourhoods take a long time to appreciate to the point where you can make a profit on the sale of a renovated house.

All in all, fixing up a character home can be a really rewarding project. It can be very satisfying to live in a home that you’ve fixed up to be just the way you like it. Take care to go into the entire process with open eyes and a good plan to make the project go as smoothly as possible.

Real Estate Appraisal – a 2-DVD set $44.95 This is a Two-Part 2-½ hour 2-DVD set featuring William Mansfield, a former real estate appraiser who has been lecturing on Real Estate Appraisal and Buying Bank-Owned Foreclosures for the past 20 years.The main purpose of these particular programs is to give the viewer an introduction to a very lucrative career in Real Estate Appraisal, showing the basic principles that are involved in the actua…

Home Buying For Dummies, 4th Edition $12.27 Now updated — America’s #1 bestselling home-buying book!Want to buy a house, but concerned about the market? Have no fear — this trusted guide arms you with Eric Tyson and Ray Brown’s time-tested advice and updated strategies for buying a home in current market conditions. You’ll discover how to find the right property, make smart financial decisions, and understand the latest lending re…

Investing in Fixer-Uppers : A Complete Guide to Buying Low, Fixing Smart, Adding Value, and Selling (or Renting) High $4.74 Expert money-making advice from the nation’s leading fixer-upper guru “Excellent book on the fixer strategy.”–John T. Reed, bestselling real estate author “Filled with practical examples of how to profit from rundown fixer-upper properties.”–Robert J. Bruss, syndicated real estate columnist Nobody wants to buy an ugly, decrepit, rundown house–which is exactly why they provi…

Fix ‘em Up, Rent ‘em Out: How to Start Your Own House Fix-up & Rental Business in Your Spare Time; or, Investing in Real Estate and Creating Wealth with Fixer-Upper Houses $14.00 This book how to get started repairing houses and renting them out in your spare time. It covers various aspects such as house selection, what to repair, handling tentants, managing the books, and taxes. The book describes the two safest ways to make money in real estate, and one chapter is devoted the the “Zen of Repairing Propertied.” The author uses examples from his own experinces, humor and m…

Tags:   diy · fixer upper home · house · housing · hud · moneyNo Comments