If you are thinking of purchasing a fixer-upper home, you will need to know how much you should pay as well as the amount of remodeling the home needs. To start you off, ask yourself the following questions and go from there.
Can You Do Some of the Renovation Work to Save Money?
You could DIY some tasks such as painting and stripping wallpaper, but electrical and structural work should only be done by professionals.
How Much Would Repairs Cost?
Get a contractor to inspect the home so that you could obtain a cost estimate on what needs done. When estimating repair costs, add about 20% on top to cover for unexpected work.
How Much Does the Permit Costs?
As your local officials if you need a permit for remodeling and how much it would cost.
Is There Structural Work That Needs Doing?
If the house requires major structural renovation, you should have a structural engineer inspect the home before sending the seller an offer to make certain that you have the budget.
How Are You Financing the Remodeling?
If you are planning on taking out a mortgage, a home loan expert in Salt Lake City such as Altius Mortgage Group will suggest that you need to make sure that you have sufficient funds for the home’s down payment, closing costs, as well as the renovation without having to drain all your savings.
What Is a Fair Offer for the House?
To calculate, determine the home’s fair market value, which is the purchase price if it was in great condition and renovated, and then subtract your repair and upgrade costs.
Do You Need to Include Inspection Contingencies?
Put simply, yes. Have a professional inspect the home. Once that is done, you could then negotiate with the seller and request them to do some of the work or give you money at closing to help pay for the renovation.
If you budget your money and time well, you will probably end up choosing the right path. Just make sure to do the math as accurately as possible because you would not want to buy a fixer-upper that you cannot afford to fix up because of poor planning.