If you’re the type of person who keeps your own power tools and doesn’t flinch at the thought of tearing out a wall, a fixer-upper property may be the perfect choice for your first home. Keep reading for advice on how to get through the process with your property (and budget) intact.
Start by finding the right property. The process of buying a fixer-upper isn’t much different than when you’re seeking a turnkey home. However, there are a few things to consider. First, the type of renovations needed. As noted on Realtor.com, there are two different types of rehab home: those in need of cosmetic upkeep and total wrecks. Minor issues, such as peeling paint, outdated carpet, and dirty wallpaper, are easy fixes. Structural problems, poor ventilation, and termite infestation, however, are a few issues that should send you running back to your realtor.
Financing your renovation project may prove tricky, as a conventional loan will likely only cover up to the amount of the property’s appraisal minus your down payment. Fortunately, there are other financing options including the Fannie Mae HomeStyle Renovation mortgage, which will take into account the estimated post-improvement market value.
Once you have finally decided on your future home, you can get to work determining how much work you’ll do yourself and which projects to outsource to the professionals. HomeAdvisor charts average professional service fees for common home repairs but cautions that major overhauls can inflate these numbers dramatically.
Where to begin
Starting a home renovation project, especially in a new house, is an overwhelming task no matter how prepared you are. Simplify things by performing a thorough cleanout of the home. Sweep the floors, clean and sand the walls, and tear out any features you plan to replace before moving in. Tools that will come in handy in these early stages include a rubber mallet and a scraper tool. You’ll also need a utility knife and arsenal of hand and power tools. A sander, cordless drill, and electric saw are invaluable additions to your homeowner toolkit.
Now that you’re surfaces are prepped, you can get to work transforming your blank canvas into a space to call home. If you plan to paint, do any drywall projects first as these tend to create the most dust, and the last thing you want is lumpy imprints on your fresh paint. Perform similar tasks at the same time – for example, replacing interior doors or laying tile. This will ensure you already have the appropriate tools within reach. (One of the easiest and most impactful projects you can do after painting is adding a glass or ceramic tile backsplash to the kitchen – if you’re already laying new tile, this will only add a few hours to your workload.)
Save money by utilizing existing features that don’t necessarily need replacement. Refacing kitchen cabinets is a relatively simple process that requires mostly patience and several types of sandpaper. You can make your own new cabinet doors or revamp the old ones with paint and shaker-style trim. A structurally-sound deck is another feature that can stay by replacing broken or rotted wood and sealing/staining the entire deck. Credit.com offers info on other simply and low-cost home renovations.
If you plan to stay put for five or more years, customize the home however you like. If making a profit within a year is in your plans, stick with a neutral color scheme and avoid over-renovating – you don’t want to create a home that can’t sell or rent based on local real estate prices.
Buying a fixer-upper property is a lot of work. But it’s work that will give you pride of ownership and possibly even put a significant chunk of money in your pocket.
Article by Julian Lane