Purchasing a fixer upper can be an exciting and rewarding decision for many home buyers. In terms of renovating and customising a home to your own tastes, a fixer upper comes close to a clean slate. Fixing up a property can also result in a higher resale price, making for a nice return on investment. But buying a fixer upper comes with its own unique challenges, and purchasing one is a decision to be made after careful consideration. It’s important to be educated about potential pitfalls, and professional assistance goes a long way in making a responsible and advantageous purchase.
If you are considering a fixer upper, it is best to work with property buying agents that have experience with such a purchase. At Setlr, we know the market for fixer upper properties, as well as the ins and outs of successfully buying property to renovate for investment, for resale or for living in. Benefit from our expertise by calling 1300 1SETLR, emailing hello@setlr.com.au or reaching out through our online contact form.
Tips for Buying a Fixer Upper
Why a Fixer Upper?
There are several important questions you will need to answer for yourself. What are you trying to achieve with a fixer upper? Will it be a place to live with your family? Do you plan to rent it out or to sell it after renovations? The answers to these questions will help narrow your focus on what kind of fixer upper home you should consider purchasing. This will also be a part any discussion you will have when consulting with a property buying agent.
Set a Budget (and Stick to it)
Consider how much you can afford for the purchase price, repairs, renovations and permits – then set a budget. That is the easy part – sticking to that budget is far more important and more difficult. This is the case with any major purchase, but it is especially true when purchasing a house. Emotions will be high as you and your significant other imagine living out your lives in the home. This can lead to overspending if you find a fixer upper that is just beyond your budget and something to be careful of when buying property to renovate.
Location, Location and Location
It is commonly said that location is the most important consideration when purchasing commercial real estate, but we find it to be equally true for residential property. You are going to want a house in a desirable location with easy access to schools, shopping and entertainment. Researching the neighbourhood and looking into any future development plans for the area are other important steps in due diligence. A home in a good location will be nice to live in, easy to rent out or easy to sell.
Be Realistic About Your Repair Skills
Before purchasing a fixer upper, it can be easy to imagine yourself doing most or all the repairs, maybe during the weekends or spending more time if your schedule permits. We find that unless you have a considerable amount of experience, DIY home repair work always takes more time and more skill than it seems it should. Mistakes with home repair can be costly and potentially dangerous – mistakes of this nature are best avoided. When buying a fixer upper, it is important to be honest with yourself about your abilities and skills when it comes to repair work and consider the jobs that are going to require professional assistance from a contractor. This is also an important part of determining your budget.
Prioritise Repairs
This can be done after buying a fixer upper, but it is best to do while still considering the purchase. Start by examining the property, or having the property inspected by a qualified professional. You’ll end up with a list of all repairs and renovation work that needs to be done, and you can prioritise those based on importance and cost. Focus first on fixing essential items – structural, electrical, plumbing and air conditioning issues take priority because of the impact on liveability. Once those issues are resolved other work can be considered and planned, and non-essential work can be spread out to optimise spending and minimise disruption.
Have Backup Plans
When purchasing a fixer upper, you should expect the unexpected and plan accordingly. It’s important to have a contingency budget to cover unknowable expenses. Budget for unexpected costs and be prepared for delays or additional repairs that may arise during renovation work. One of the best ways to avoid unexpected surprises is to engage professional assistance when shopping for a fixer upper.
Setlr Buyers Agents Makes It Easy
We are the Brisbane home buyers agent of choice for fixer uppers and buying property to renovate. We want to hear your ideas and learn about your goals for the future – this will help us focus our search for your best home. We’ll also inspect the property so you will know exactly what you are getting and there will be no surprises. Take that first step towards your new life. Call us today on 1300 1SETLR, email hello@setlr.com.au, or get in touch via our online contact form.