Fixer-Uppers: How To Know You Are Getting A Deal in Fort Worth
Purchasing a fixer-upper can be a lucrative investment opportunity for those looking to own a home. Unlike move-in ready homes, fixer-uppers offer an opportunity for customization, as well as potential cost savings. However, before buying a fixer-upper, there are several key factors to consider in order to ensure you are making a smart investment. In this article, we will take a closer look at the steps you need to take in order to make an informed decision when buying a fixer-upper in Fort Worth.
The Neighborhood
The first step in buying a fixer-upper is to research the neighborhood in which the property is located. This will help you determine whether the home is at risk of depreciating in value, and will also give you a sense of the current real estate market in the area. You should compare the prices of similar homes in the area, and add an additional 10-20% to your estimate of the total cost of repairs and renovations. This will help you prepare for unexpected expenses that often arise during the renovation process.
Be Realistic
It’s important to be realistic about your own skills and experience when it comes to home repairs and renovations. HGTV may make it seem like anyone can tackle a DIY project, but the truth is that many repairs and renovations are best left to professionals. Before you start the renovation process, assess your own capabilities and budget accordingly. If you’re confident in your abilities, then go for it. If you’re not, then consider hiring a professional for help with the more complicated tasks.
After-Repair Value
Another key factor to consider when buying a fixer-upper is the home’s after-repair value. You may not recoup all of the money you put into the home in terms of upgrades and renovations, but you should still focus on making repairs and upgrades that will add value to the home. If you’re planning to flip the home, be careful not to overdo it with expensive upgrades that may not actually increase the home’s value. Focus on making the home livable, and make repairs and upgrades that will have the biggest impact.
The Fundamentals
Before making an offer on a fixer-upper, there are several key elements of the home that you should inspect. These include: the foundation, the structure of the home, the roof, windows and doors, heating and cooling systems, plumbing, and electrical systems. If you notice any problems in these areas, it’s important to take note of them and consider them carefully before making your offer. You may also want to have the home inspected by a professional before making a final decision.
In conclusion, buying a fixer-upper can be a great investment opportunity, but it’s important to do your research and prepare yourself before making a purchase. Be realistic about your own skills and experience, focus on making repairs and upgrades that will add value to the home, and thoroughly inspect the home before making an offer. If you’re in the market for a fixer-upper in Fort Worth, Pioneer Home Buyers can help you find the perfect property. Contact us today at (817) 382-1155 to get started!