Even though Chip and Joanna Gaines have ended their wildly popular TV series Fixer Upper, their legacy of fixing up homes lives on. They've inspired men and women everywhere to get their hands dirty and bring a fresh vision to life in older homes.
The fixer upper and house-flipping trend isn't going away anytime soon, but it isn't for the weak of heart. If you're brave enough to take on a fixer upper, there's a few things you need to know before you take the leap.
In our blog this month we've prepared a list of what you need to know about buying a fixer upper or house flip:
Know the costs.
Consider all of the costs that go into purchasing a fixer upper. You will be looking at costs for a rehab team, the actual purchase of the home (including the home inspection, appraisal, lender fees, etc.), plus the costs of home ownership. Buying a fixer upper is more than simply having a vision, it's hard work and costs money so prepare yourself before diving in!
Check the zoning.
Knowing the zone your home is located in will tell you what you can and cannot do to the home. To do this, simply visit the municipality's website or meet up with a staff member that can help you understand the legalities.
Bring in an inspector.
While you're waiting for a contract to be drawn up on the house you want to purchase, you'll need to hire a home inspector to look at things like structural issues, plumbing, electricity and roofing. Ask questions about the age of systems and get to know the house while the inspector is there. Also share with them the work you plan to do in terms of upgrades and/or additions and get feedback from their perspective.
Hire professional help.
You may need to hire an architect to help you make your plans and glean from a design perspective. They'll know if certain walls are load-bearing, which will you will need to know if you plan to go Joanna Gaines and knock out walls! Make sure to get a contractor that you trust to avoid a nightmare of a situation. Ask for referrals! " Research tax incentives: Depending on where you live you may be eligible for a tax credit for homeowners that improve their property's value! Do a little research to see if you quality for these incentives.
Get a realtor on your side.
An agent can negotiate the price of the home you want to invest in, which will give you more room in your rehab budget and more profit if you plan to sell. Go with an aggressive agent to be an advocate for you to get the best deal. Plus, an agent can do the number crunching for you. Buying and selling flip homes involves a lot of budgeting and number crunching. You need an agent that knows the real estate market, has networking skills, and can crunch numbers quickly. An agent can figure out the price point of the home you need to buy as well as what the price point needs to be when you sell. If the numbers don't work for a home, an agent will be able to determine that so that you don't waste time pursuing it.
Work with Us
Engel and Völker advisors are qualified, respected real estate professionals in our community. They have the market knowledge, network, and number-crunching power you need for your fixer-upper adventures.
For a real estate advocate look no further than right here. We'd love to help you make your dreams come true. Here's to a successful fixer-upper!