Fixer Upper Money Pit
Cosmetic or Bones? Fixer Upper can mean different things for many:
Want a fixer upper? I meet clients, often, looking to buy and “flip” or want a deal on a Fixer Upper. Looking for the deal of the year. I am not against this but it does take a level of sophistication to make this happen, successfully. First you need to determine a budget. Then what you would like to net from the deal? Be sure to have a buffer in the budget for those items that show up while you are doing the demo. A cosmetic fixer is pretty much going in and making the home look pretty. Update floors, bathrooms, paint inside and out. A “real” fixer upper is a “gut job.” You will need to be aware of what is or could be behind those walls, under the house and under those sinks. A good agent can help assist with this. But, keep in mind a lot of these types of homes have no reports on file and you, usually, need to make an offer BEFORE you get inspections. However, don’t get discouraged. Just use your resources so you know what you are getting into. An agent will run comps based off the home being improved at that time. We get a contractor in the home to give us a bid. Most contractors will leave a “buffer” or “pad the budget.” They, too, know that once they open up walls, etc, more problems or repairs could be exposed. When thinking about getting into the “flip” business, think about end result. Almost any buyer is going to get inspections completed and it will expose anything you try to hide, so don’t. If you purchase a Fixer Upper, then do just that….Fix it Up! And don’t go at it alone. A realtor is one of your good resources. They have the relationship with the listing agent and they can communicate the concerns. Don’t be afraid of purchasing a Fixer Upper, but be aware and informed. Call me to help you!
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