Leave a Message

Thank you for your message. We will be in touch with you shortly.

Fixer Upper Or Money Pit?

November 3, 2022

south florida real estate

Fixer Upper Or Money Pit?

If you're looking to buy a fixer-upper for your next home or as an investment, it pays to take caution. What may look like an easy profit may turn into a giant money pit. 

Here are some considerations when making your home buying decision.

When buying a fixer-upper, experts recommend looking for homes that need cosmetic improvements rather than structural changes or major renovations. Cosmetic improvements can be made with elbow grease and a planned budget. Renovations and structural changes tend to grow much more significant than anyone anticipates. In addition, they cost extra time and money to get the job done. 
Additionally, while structural improvements may be required to make a home liveable, cosmetic changes generally have a better return on investment. 

When you are considering a home purchase, add up the costs to renovate the property based on a thorough assessment of the house's condition. You will likely want to have the assistance of a home inspector and a real estate agent who knows the area. The real estate agent can advise you about what other homes in the neighborhood go for, what the schools and property values are like, and if the area is on an upswing. 

Be very thorough and estimate on the high end. Include labor and materials. 
Knowing the home s estimated market value once the renovations are complete will help you understand your potential profit. 

Experts recommend deducting another 5 to 10 percent for extras and unforeseen problems. They always happen if you don t make room for them.
Once you do the math, you'll be able to determine what a fair offer is. 

Essentially, it'll be the home s estimated future worthless the expenses to fix it up.

Getting experts to help you with your labor, materials, and estimated value after the renovations are complete will help you make an accurate and fair offer on the home. And always have the home inspected thoroughly so you don t end up having to make significant structural improvements that can eat away at any potential wiggle room or profits. 

Buying a fixer-upper is a great way to save money on a home purchase, and the rewards can be significant. Buy wisely, buy cautiously and use the advice of experts to guide you and your decision.  

 

 


Recent Blog Posts

Stay up to date on the latest real estate trends.

Income Tax Strategies

Disposal of Assets Using Cost Segregation and Accelerated Depreciation

Mitchel Wachman  |  November 13, 2024

The disposal of assets in a business or real estate investment setting can bring a range of tax and financial implications. Leveraging tools like cost segregation and … Read more

Income Tax Strategies

Cost Segregation - Tax Savings on Investment Properties

Mitchel Wachman  |  November 17, 2023

No Cost Tax Savings Analysis

Waterfront Palm Beach

Market Update

The Big Story

Mitchel Wachman  |  July 15, 2023

The labor market is too strong for a recession, so what’s the Fed to do?

home cooking

Summer Seafood Grill

Mitchel Wachman  |  July 15, 2023

Grilling Seafood on the BBQ

greenflamingorealty

buying

Can Your Agent Negotiate?

Mitchel Wachman  |  May 11, 2023

Making sure negotiation is a part of the deal!

OUR PROPERTIES

buying

To Buy or To Rent... That is The Question

Mitchel Wachman  |  May 9, 2023

As a leading real estate company, we understand that one

Home prices rise chart

Market Update

April Real Estate Market Update

Mitchel Wachman  |  May 3, 2023

Market Update -South Florida

dream home

The Pros and Cons of Buying a Fixer-Upper Home

Mitchel Wachman  |  April 10, 2023

It can be tempting to take on a home renovation project, especially with all of the popular TV shows showcasing stunning before-and-after transformations, but is it ri… Read more

Beach Life

Smart Home Technology: How It’s Changing The Game for Homeowners

Mitchel Wachman  |  April 7, 2023

With advancements in smart technology, homeowners can live in comfortable and convenient spaces while also saving money on energy costs.

Let’s Talk

You’ve got questions and we can’t wait to answer them.