If you're a DIY-enthusiast in the market for a new home, it may be beneficial to learn how to get a fixer upper. Fixer-uppers have low purchase prices because they require major repairs, whether structural, aesthetic or both.
Fixer-uppers are also a popular choice for those wanting to flip properties for profit in the marketplace. So, how do you go about finding and buying a fixer upper house?
The first thing to do when thinking of buying a fixer upper house is determine whether you can actually afford to make the necessary improvements to the home. Create a detailed list of projects, and include estimates for materials and labor. If you need a contractor, get multiple quotes to compare rates.
Regardless of the home's condition, you'll likely need a mortgage. The Federal Housing Administration (FHA) offers different types of rehabilitation or remodeling loans to consider.
With this type of financing, you can both purchase the home and save money in an escrow account for future repairs.
A real estate agent can help you not only find the right fixer upper home, but offer valuable advice on improvements to prioritize. We may also be able to recommend professionals in our network, such as contractors and home inspectors.
If you plan to fix-and-flip your project home, it's crucial to keep a close watch on the local market. Consider the amount of money you plan to put into the home compared to the purchase price of similar homes in the area.
This can help you avoid overspending and ensure you place your home for sale at the best possible time.
Is a fixer upper right for you? Keep these tips in mind when beginning your home search, whether you plan to customize your dream home or make a big profit.
Kimberly Kelly decided to get her real estate license when she moved to South Orange with her family and fell in love with the classic, period homes of the area. Having worked in the city for many years for LexisNexis, Kim understands the appeal of an easy commute to NYC. That’s why she specializes in towns along the Mid-Town Direct train line, offering welcoming communities, good schools, and space to grow.
Very active in her children’s school PTA, Kim knows firsthand how important a school system is to parents looking to make the move to the ‘burbs. She volunteers with fairs, fundraising, and other activities that bolster support for education. Kim also believes involvement in the greater community enriches us all and has sat on various boards & associations throughout the years.
Kim Kelly has lived many places throughout her life, from Pennsylvania to Oregon, but has found New Jersey to be the ideal place to raise her family and put down roots. She loves nothing more than helping others discover their special place as well. Kim’s extensive knowledge of the area, combined with her sense of community, offers clients a personalized guide to finding the right house - and town - to call home.
