When looking to buy a new home or thinking about entering the lucrative world of investment properties, nearly everyone in real estate will tell you that location is key; however, as with most things in life, if you want to be in that great area, your wallet is going to feel the pinch. Therefore, if you’re like most of us and your income dictates your limits, instead of looking for that beautifully detailed, move-in ready abode, try thinking outside the box and open yourself up to the idea of a great fixer-upper.
While not everyone is game for the extra up-front work involved, if you’re feeling adventurous and looking to get a healthy return on your investment, there are a few things to remember when looking for a house in need of a little TLC.
1. LOCATION REALLY IS KEY—When the time comes to sell, location is generally the FIRST thing that buyers consider. With that, any renovations you make need to fit in with the context of the surrounding neighborhood. If most of the houses are brick or stucco, you don’t want yours to be the only one with vinyl siding.
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2. OUTDATED DOES NOT HAVE TO MEAN MISTREATED—Since most fixer-uppers are generally going to be older models, you’ll want to make sure that the bones of the house have been taken care of. When shopping around, it’s often a smart idea to have a professional with you who can spot structural issues such as sagging floors, settling foundations, or plumbing issues.
3. GET PAST YOUR FIRST IMPRESSIONS—When looking at houses that need some love, allow your creative juices to flow and work on embracing the ugly. Instead of focusing on the drab finishings, horrible paint choices, or unsightly floor stains, pay attention to things like layout and overall spacing potential. Frankly, when it comes to bargaining for that great price, the layer of dirt and lingering smell will wind up being your best friends.
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4. BE YOUR FUTURE BUYER—Since you’re shopping for a fixer-upper with plans to renovate, keep that in mind when you’re laying down those construction plans and make them according to what you think future buyers might find appealing.
In short, this process can be exciting and incredibly gratifying, so it’s important to look at it as the beginning of your investment journey. With a little bit of creative imagination, savvy bargaining skills, and a keen eye for the future market, that antique can truly become a modern gem.
