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Whether you flip houses to make a profit or are hoping to create your dream home, a “fixer-upper” can come with many opportunities and challenges. When you buy a home that needs work, especially one that is older, there will be different issues to address. From plumbing and electrical problems to outdated heating systems and home appliances – each home is unique. Before you plan your first project, make sure to consult with local contractors. In this article, we will share four steps every homeowner should take after purchasing their fixer upper.
1. Have a Specialist Inspect the Property
First, make sure you hire a home inspector to look over the home and all of its systems with a fine-tooth comb. This specialist will provide you with an action plan before you close on the home. This list is often extensive, but some of the issues mentioned will be of minimal concern. Other issues will be fairly urgent. If there are major areas of concern, updates and improvements can be negotiated into the purchase. In addition, individuals can use a home equity line of credit to finance large and small repairs.
2. Ensure Equity in the Home Is Enough for a Down Payment On Repairs
If you plan on making home improvements, whether it’s during the renovation process or after moving in, make sure that your home is valued high enough to cover what will most likely be a hefty renovation bill. This ensures that if you run short on funds for improvement projects, something can be re-negotiated down the road with your lender. Although this may seem like a nuanced situation, it is critical in order to make a profit in the future.
3. Make a Detailed List of Required Repairs
While an inspector is looking over your property, take the time to walk through it yourself and write down all the necessary repairs and updates that you notice need to be made (broken appliances, leaky pipes, outdated electrical panels). Finding out about any problems before purchasing your home can save thousands in future renovations. After making this list of changes, you will be able to find the right contractor to get the job done.
4. Be Prepared
A fixer-upper comes with a few inevitable annoyances. First, you can expect to have a lot of trash. Consider getting a bin rental for renovation to keep in your driveway throughout the project. In addition, you will want to stock up on cleaning supplies. Another thing to remember is that fixing a home is time-consuming. It is important to be prepared to work on the space by keeping a clear schedule and powering through long nights.
Summary:
Fixer-uppers come with many different opportunities and challenges that should each be considered prior to buying the house. Whether you are flipping a home or trying to create your dream home, there are many ways that you can improve the space that you invest in. By being patient and prepared, you will be able to create a beautiful property.
