Fixer-upper properties have the potential to turn into lucrative investments. However, before you buy a home to renovate, there are important factors to consider. When it comes to revamping a structure, things may not always go as planned, and if you stray too far off, you could end up going over budget. The best way to approach the situation is to overcompensate for the unexpected when planning. This ensures you won’t go over budget and can come out on top when you flip the home.
3 Details to Plan for Before Buying a Fixer-Upper
1. Contractor Costs
When you tour a potential fixer-upper, pay attention to the major systems that are going to require contractors and specialists. Does the wiring require an electrician? Is significant demolition and rebuilding work required? Will you be knocking down walls or need to consult with an architect or engineer? If you have contractors in mind, ask for estimates before you buy a home to fix up so you can gauge when the investment will weigh out against the costs.
You can’t fix anything without fresh materials, so factor in what’s necessary and what you want to use to enhance the home. Consult with a building contractor about how much wood, concrete, hardware, flooring, and other materials will be needed, and always compensate for anticipated job site losses. Then, factor in extras, such as granite countertops, specialty cabinetry, or natural stone flooring you want to advertise as an amenity so you have an idea of what you’ll spend putting everything together.
No property has ever been flipped without a few hiccups. Mistakes are going to be made, materials are going to be lost, and there will be minor setbacks. Rather than pushing everyone to be perfect, budget to include these possibilities so that when they happen, you’ll still be on your financial mark.
Lawrence Realty has been the go-to resource for real estate investors, homebuyers, and sellers in Red Wing, MN, since 1948. Whether you want to buy a home or commercial property or wish to make a sale, their experienced team of real estate agents will work closely with you throughout the process. As a family-owned and -operated business, they believe in putting clients first, and they take every measure to achieve a positive outcome. If you’re ready to buy a home, visit their website to explore their listings. You can also call (651) 388-4745 to schedule a consultation with a real estate agent, and connect with them on Facebook for more insights.