How to Buy a Fixer-Upper for Your Next Home Move

With the housing market as hot as it is, buying a house has never been more challenging. You could compete against dozens of other buyers, some ready to make a cash offer. One way to mitigate these challenges is to buy a fixer-upper. These houses often don't go as quickly as they're not "move-in ready."

However, you can turn a fixer-upper into a fantastic home with a bit of insight and savvy. Also, depending on your situation, you may be able to "flip" the house for more money to buy your dream house potentially. With that in mind, let's look at how to buy a fixer-upper for your next home.

Step One: The Neighborhood Matters

It's one thing to buy a fixer-upper. It's another thing to buy one in an unsafe or declining neighborhood. In the latter situation, even if you can get the house in excellent condition, you still have to worry about undesirable neighborhood issues. Also, when you're ready to resell, you won't get as much of a profit because of the area.

Ideally, you can buy a fixer-upper in a thriving neighborhood. Once it's improved, it fits with the rest of the homes and can sell much faster.

Step Two: Get Estimates of Repair Costs

While getting a home inspector to evaluate all the various problems is tempting, it's better to get focused professionals to look at each section individually. So, you'll want a roofing inspector, foundation inspector, HVAC, and more. This way, you can get more accurate estimates of the repair costs needed.

Also, make sure to work with professionals that can deliver fast results. Even fixer-uppers can go quickly, so you can't afford to wait around for someone to check the place out. If you're unsure what current issues are, you may use a general home inspector to find problems and then hire specialists to get precise estimates.

Step Three: Prioritize Repairs

Once you know all the problems with the house and the repair costs, you have to prioritize them. The first step is looking at issues that can affect your health and safety. For example— will it collapse during the next thunderstorm if the roof has considerable damage?

Next, you want to address minor problems that can become substantial headaches later. For example, a small roof leak can lead to mold, wall damage, and even foundation issues.

Finally, pay attention to the repairs that are not immediate but should get addressed before you consider reselling. If you plan to stay in the house for at least five years, you can factor that into your decision and offer.

Step Four: Make an Offer

Ideally, you can reduce your offer based on the total repair cost for the house. However, realistically, you can only get a reduction for immediate repairs that can't wait more than 90 days.

One way to save money on these tasks is to get a renovation loan. This loan is higher than a traditional mortgage because it includes funds to fix any significant existing repairs. In addition, you don't have to rely on credit cards or other loans to get the job done.

Get Moving Help For Your New Home!

Once you make an offer, it gets accepted, and you're ready to move in, contact us! We can help you plan and pack for your next stage, so see what we can do for you!