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5 Important Things to Consider Before Buying a Fixer-Upper Home
Purchasing a fixer-upper property can be an exciting and rewarding experience. HGTV is filled with programs of amateurs knocking down walls and tiling bathroom floors. The fact is that this is much harder than it looks and before diving headfirst into this kind of project, it’s critical to consider whether you are prepared for the venture.
5 Important Things to Consider Before Buying a Fixer-Upper Home
1. Financial Planning – The first step in buying a fixer-upper home is to establish a realistic budget. Include the purchase price, repairs costs, and any expected expenses for renovation or restoration. Once you have created a “known” list, then add extra for unexpected issues that will arise.
2. Time and Effort – Renovating a fixer-upper takes time and effort, even if you hire a general contractor to oversee the project. Consider the overall scope of the project and evaluate your skills and level of time commitment.
3. Structural Condition – Before making an offer, thoroughly inspect the property’s structure and foundation. Recognize the impact of any issues uncovered and make sure to budget for the proper corrections.
4. Real Estate Market and Location – Even a beautiful home in a terrible area is a bad investment. Consider such factors as property values, market trends and the potential for future appreciation. Work with a financial planner to make sure the investment fits your long-term goals.
5. Legal Considerations – Before writing the offer, familiarize yourself with local building codes, permit requirements, and zoning regulations. Ensure the changes you anticipate align with local requirements.
Purchasing a fixer-upper home can be a wonderful investment and worthwhile project. By evaluating your budget, time commitment, property condition, and potential appreciation, you can be sure to choose the right situation for your goals and experience.
Our Real Estate professionals are knowledgeable and ready to assist you with your buying or selling needs.
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Market Outlook
There’s been some concern lately about another housing market crash. Maybe you’ve read articles linking today’s environment with the Market Meltdown of 2008. Even with the talk of recession, this real estate market is very different and that means that most experts do not expect a crash, just a normal ebb-and-flow slowdown. There are some significant differences in today’s situation:
Loan Qualifying
Heading into the 2008 crash, loans were very easy to find. Almost anyone could qualify for a loan with zero down payment and lower FICO scores. The lending industry was taking huge risks, and this pushed home prices
higher, artificially. With stricter lending policies in place, not only do borrowers need to qualify properly, but appraisals are based on true value, avoiding over-inflated prices.
Housing Supply
Another difference is the housing supply. As home prices soared, so did the number of homes for sale. Currently, there is still a shortage of available inventory for the buyers still looking for a new home.
Equity Levels
Another huge difference is near record equity for most homeowners. The strong housing market during the pandemic pushed home values higher than ever before. Contrast this to the Market Meltdown era of short sales
and foreclosures, and it’s clear that most sellers can still afford to negotiate and reap a healthy gain in the process.
What this means to you
The bottom line is that if you are a buyer looking to purchase or a seller ready to move, there is no reason to wait or worry that there is a crash on the horizon. The frantic pace of the market has slowed, interest rates have risen, but opportunities are still available in this market.
Our Real Estate professionals are knowledgeable and ready to assist you with your buying or selling needs.
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Showing Instructions and What They Mean
Making the decision to sell a home is just one of the many decisions that are made during the home selling process. Many first-time sellers assume that all listings are the same and it’s just a function of picking a starting price. The fact is that there are many aspects of a listing, but one of the most important is what kind of access you’ll provide to the buyers and their agents.
It seems simple, right? Show the home and send an offer. But believe it or not, there are many options for how you allow your home to be shown. Depending on your lifestyle and the valuables you have, the way you allow access is one way to safeguard your home. Here are some of the typical types of access:
· Lockbox on Door – This allows the most access to agent. Normally accompanied by a request for a phone call. But then agents can see the home as needed.
· Access with Phone Call – In this case, the buyer’s agent must reach the agent or seller who will provide an unlock code for a single use.
· By Appointment Only – This is starting to limit access more strictly. Often, you will still have a lockbox that you place out only for the appointed time.
· By Appointment with Listing Agent – This asks that the buyer and seller agents coordinate so that the listing agent is in attendance.
· Limited Access – This type of access often involves specific days or times, and the home is only available to see during those times.
Of course, the choice is always yours, but the more access you offer to the buyers and their agents, the better opportunity you have to get a strong offer.
Our Real Estate professionals are knowledgeable and ready to assist you with your buying or selling needs.
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What Not to Say When Someone Asks Why You’re Selling
The minute you list your home, everyone will want to know why. You will hear from your neighbors, family members, and friends. Of course, there is no harm in speaking freely with family and friends but be careful what you
tell your neighbors and especially the buyers and their agents who visit your listing.
First, it’s no one’s business but your own. You are not obligated to share personal information with anyone, and you must be especially careful when speaking with potential buyers. If they sense desperation, this will affect the kind of offer they write.
A simple, “we are ready for a change,” is a great response to anyone who doesn’t need to know. How you answer is less important than avoiding the wrong answers.
· “I got a new job” – Job offers or transfers are a common reason for a move. These moves often come with deadlines which alerts buyers that you need a quick sale, and may be willing to compromise on price to get one.
· “We need a bigger house” – It’s perfectly understandable that a growing family needs more space. Telling a buyer this, however, may cause them to question the size of the home and if it’s too small for them also.
· “We want to lower our costs” – This may just be a simple downsizing after the kids have left, but talking about affordability is a red flag to buyers. Is the home too expensive? Is the price too high? Energy bills too high? Upkeep too much?
Successfully selling a home is more than just marketing. The best course of action is to limit divulging too much personal information about your situation, but if you do, be mindful of how much you say. Be pleasant, but do not overshare, it may cost you in the end.
Our Real Estate professionals are knowledgeable and ready to assist you with your buying or selling needs.
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Prepping an Empty House for Sale
You read that right. Should you “prep” an empty house? This is not about adding furniture or plants to a vacant home, but it’s about looking at the empty home and making it more appealing to buyers.
Not all homes need furniture to sell for top dollar, but even a vacant home needs attention before it’s ready for showing. The key is to remove anything that would distract from a buyer seeing the home in its best light and highlight its best features.
What Should You Remove from a Vacant House?
· Anything that isn’t clean – Remove dirt from ceiling fans, baseboards, sink, dishwasher, windows, shelves, etc.
· Leftover Items – Hangers in closets, old batteries from drawers.
· Cable and Cords – Neaten walls and floors by removing or hiding.
· Worn or Stained Carpet – Replace old, damaged, stained, or dated carpet.
· Old Window Treatments – Old dated curtains and tired Venetian blinds are distracting, remove them.
· Spider Webs and Dust Balls – Check those corners for dead bugs, cobwebs, and dust.
· Leave Behind Furniture – Don’t be tempted to leave indoor or outdoor furniture you no longer want.
· Dead Leaves – Clean the yard and remove all debris.
Vacant homes offer a blank canvas for buyer’s imaginations. To sell quickly, make sure the home is clean, fresh, and ready for showing by removing distractions and anything which appears old, dirty, or shabby.
Our Real Estate professionals are knowledgeable and ready to assist you with your buying or selling needs.
Call Us Today!
