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The Do's and Don'ts of Buying a Fixer Upper

The Do's and Don'ts of Buying a Fixer Upper

Purchasing a fixer upper house can be a great real estate opportunity if you do it right, but it can be disastrous if you do it wrong. You want to make sure that you take all the right steps and are motivated by the right reasons before you decide to invest your time and money in a home that needs a lot of attention to make it habitable and desirable. If you are wondering, "Should I buy a fixer upper house," here are a few do's and don'ts to consider.

Do:

  1. Get a thorough home inspection. A home that needs work is a costly investment, and you want to make sure you know everything there is to know before you put your money down. Your agent can put you in touch with a quality home inspector to go over the entire home so you don't miss any important details.

  2. Get multiple repair estimates. You definitely want a professional opinion on how much you will need to invest to make the necessary repairs and updates a fixer upper needs. And you don't just want one professional opinion, you want several. Some contractors may quote you prices which are exaggerated in one direction or another, and getting multiple estimates will help you arrive at a more accurate figure.

  3. Look into a renovation mortgage. There are mortgages specifically for people looking to purchase homes that need work. These can offer you the money you need to raise the value of the home and make it a worthy investment. Talk to your realtor about finding the right mortgage and the right lender for your fixer upper.

Don't:

  1. Buy it just because the price is low. Sometimes a shockingly low price tag is a warning sign that a home is a lost cause. If you mistakenly put your money down on such a home, you are likely to lose it or end up spending much more then you should to make the home worth anything to anyone. Make sure you have a talented professional by your side to warn you of potential bad investments like this.

  2. Expect to make a big profit. Some people are fortunate enough to make a big profit when they buy a fixer upper and put in some work, but this doesn't happen for everyone. In fact, it is more likely that you will get little or nothing in the way of profit out of your fixer upper.

  3. Underestimate potential problems. Remember that a fixer upper is a house in need of work, and that the further into it you get the more problems you are likely to find. Make plans for unexpected problems to come up and cost you more money, and you are less likely to end up with an unpleasant surprise that you can't manage.

An agent can help you navigate the tough stuff and find the best opportunities, and we have the best agents available. Contact us today and let us put the right professional realtor assistance in Dallas on your side.

About the Editor

Arun Kumar

The old adage is that hindsight is always 20/20. Seven years ago, I embarked on a journey as a serial entrepreneur. I built my very first business in India and later expanded to the US. In weathering the ups and downs of several business brands, I discovered my passion for the digital platform.

I could see a huge opportunity to connect home buyers and sellers with quality information and service providers. That led to the birth and co-founding of HelpFindingMyAgent.com


Arun Kumar
Co-Founder of HFMA

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