These days, it is practically impossible to turn on the TV without seeing a home-improvement show where they are dramatically making over an old, outdated home. Buying unattractive or worn down properties and fixing them up to look like new again is a growing trend. Known as fixer uppers, these houses can usually be purchased for very little money. Once the renovations are done, their value dramatically rises, making it a good way to build instant equity.
Before you jump in and buy a fixer upper in Farmers Branch, Texas, however, there are some important things that you should consider. One of the most vital things to keep in mind is that renovations almost always take longer and cost more than expected. When planning your budget, make sure to leave a lot of extra room for unexpected expenses.
Anytime you buy an older property with the idea of renovating it, problems are bound to occur. For instance, what happens if you go to replace the kitchen flooring only to find out that the old flooring contains asbestos? In that case, you have to hire a remediation team to come in and safely remove the old flooring for you, which can cost thousands of dollars. Failing to plan for these unanticipated expenses can quickly blow your budget. If you leave extra money, however, you can tackle any problems that come your way.
If this is your first time fixing up a home, you should go with a property that doesn’t need a lot of repairs. Choosing a cosmetic fixer is a good way to get your feet wet to see if you like the process before undertaking a larger project. Tasks like painting the walls or putting in new flooring are generally a lot easier and less expensive than making structural changes or dealing with electrical problems.
When you find a home you are interested in, always have it professionally inspected by a qualified home inspector. That way, you can get a better idea of what is really wrong with it before you decide to go through with the purchase.
Finally, the last tip for buying a fixer-upper in Farmers Branch, Texas is to consider financing the cost of the renovations into the purchase price of the home. Certain loan programs will allow you to include your renovation costs in your mortgage as long as the final value of the home after the renovations will be higher than the total value of the mortgage.