How to Know When It’s Worth it to Buy a Fixer-Upper
We’ve all watched those flipping shows, where a burly guy and his beautiful designer spouse buy a dump and turn it into the perfect home. They sell it fast and make a ton of cash. That’s just a TV show, right? Obviously flipping houses does occur, just usually not to that level of success. And yet a lot of people shopping for real estate are looking for a solid home at a decent price that they can put their own sweat and tears into, and add to the value of the property in the process. How do you avoid getting burned financially by buying the wrong house? There is a difference between a fixer-upper and a money-pit. Read on.
A Fixer-Upper is generally a home that’s in a decent location, structurally sound, but needs general maintenance, a lot of cosmetic changes and design improvements. The homeowner can usually reside in the home while the work is being done…so it’s not THAT bad of a place. Many times the projects can be DIY, too. The projects often include:
- Walls – fill holes, repair damaged areas, remove and update wallpaper and paint. The exterior may need some repair and painting as well.
- Floors – refinish hardwood floors, clean or replace carpet and upgrade other flooring materials.
- Lighting – update fixtures throughout the interior and exterior of the home.
- Wood – replace damaged trim, repair doors and cabinets.
- Kitchen and bathroom – new hardware, painting or refinishing cupboards if necessary.