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Fixer-uppers are great investments - if you know how to buy them. Here are 8 tips when buying a fixer-upper.

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8 Tips When Buying A Fixer-Upper

1) Do Your Research!

The number one rule for buying any property is always to do your research. Make sure the area where the home is located is safe, has low crime rates, and an excellent school district if there are kids involved in this purchase. 

2) Get A Home Inspection

No matter how good a deal looks, always get a home inspection. This will give you an idea of what needs to be fixed and/or replaced and will help you negotiate a better price on the property.

3) Draw Up A Renovation Plan

Once you know what needs to be fixed, draw up a plan on how you are going to renovate the house. Decide which projects are most important and then prioritize them.

3.1) Stick With The Plan

Time is money so stick with your renovation plan. If one of the first things you want to do is build a wall between two rooms but later realize that it would make more sense to put in new windows before doing this, don't change your plans. This will only set you back timewise. You can always make changes later on or even sell the property if it's not exactly what you wanted.

4) Establish A Timeline And Budget

Create a timeline and budget. Now, do not go too strict with this but try to stick to it the best you can. The timeline is so you know when you need to have certain things done, and the budget is so you don't spend more than what you want/need to on the project.

4.1) Only Buy What You Can Afford

Make sure that when buying a fixer-upper, only buy what you can afford. This means that you should have an estimate of all the repairs/renovations that will need to be done and factor this into your budget.

5) Hire A Contractor

Unless you are experienced in fixing up homes, it is best to hire a contractor to help with this project. They will know exactly what needs to be done, how much it will cost, and how long it will take. For example, if you are wise and looking to install a solar roof, you’d be better off using a professional installer. This will take some of the stress off of your shoulders.

6) Consider Building Instead Of Buying

If this home has enough land, think about building instead of buying. This will cost more in the beginning, but the long term will be cheaper because you will own both the land and home while only having one mortgage payment.

7) Look For Long Term Value

When purchasing any property, look for long-term value, meaning places where there are many opportunities for growth over time (buying near a University, downtown area, etc.). This will ensure that your investment is a wise one.

8) Have Fun With It!

Fixer-uppers can be a lot of fun to fix up and make your own. Take this opportunity to really personalize the home to fit your and your family's needs. So go ahead and have some fun with it!

There You Have It

These are just a few tips for those considering buying a fixer-upper. Always do your research and consult with professionals before making any decisions. Have fun with the project, and enjoy making your new home exactly how you want it!

Photo by Anastasia Shuraeva from Pexels