23 Mar How to Decide Whether a Fixer-Upper Is for You or Not

Guest Post by Katie Conroy

Renovating a fixer-upper can turn out to be fulfilling (and profitable) if you’re looking for a rewarding project to keep you busy. However, finding the right one could prove to be a challenge if you’re not sure of what it is that makes a fixer-upper worthy of your time and investment or not. So, if you are looking for some assistance to help point you in the right direction, here are some tips on what to look for right at the beginning. Contact The COLLINS TEAM at Realty One Group Mountain Desert for assistance in finding and moving property!

Location

Selecting the right location is vitally important if you want to find your ideal fixer-upper. This is because properties in higher-end locations usually tend to have higher market values. Therefore, you’re likely to make a decent profit if you decide to flip it one day.

Investigate the extent of the repairs

While it may be exciting to envision turning a property into something fresh and fabulous, it’s also a good idea to investigate the work (and money) that will go into renovating a property fully. If the repairs are largely cosmetic in nature and the cost of repairing these aren’t likely to make a huge dent in your pocket, then this is a good sign that your decision to buy may be the correct one. However, suppose the extent of the damages is far beyond what you had anticipated or budgeted for, then it may be better to rather pass on it instead.

Getting started

Let’s say you’ve decided on a property that’s the fixer-upper of your dreams, and you’re ready to get the revamping process started. But there’s just one glitch – you don’t know what to get started with first. In this case, you should ideally begin with those projects that will get your property move-in ready first. Moreover, if it’s the kitchen or bathroom, for example, that needs the most attention, then focusing on these areas may be the way forward in building a home that’s attention-worthy. In fact, it is these two key areas especially that potential buyers are most likely to be interested in when deciding to purchase a property.

What to do yourself and what to outsource

Of course, you won’t be able to do everything yourself as far as home renovations go, even if you wanted to. Moreover, there may be projects where enlisting the help of professionals is necessary simply because you are not qualified to manage the project yourself. Tasks you should rather leave to the professionals include plumbing, electrical work, installing HVAC systems, tiling, roofing, etc. On the other hand, if you’re particularly adept at minor DIY projects, then home projects you could put your hand to could include (but are not limited to) painting, wallpaper application, applying backsplashes, general decor, and more. 

Deciding to sell or keep it

At the end of the day, your motivation in buying the property will determine whether you would want to keep the property for personal use or if you would rather flip it for a profit. That said, flipping property is a great way to turn around sizable profits in a relatively short space of time. So, if you are looking for a job with lucrative earning potential, flipping a fixer-upper is an excellent way to go about this. 

But suppose, you rather want to keep the property once it’s done to turn it into a vacation rental or tenant housing instead. Then as a property owner, you’ll want to register your business with an Employee Identification Number so that you can claim back the applicable taxes in due course amongst other start-up considerations.

In conclusion, renovating a fixer-upper is usually a mammoth undertaking that can be really exciting or an absolute disaster depending on what fixer-upper you choose. Therefore, it’s best to choose carefully if you don’t want an unpleasant and costly exercise down the road.

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