Fixer Upper Or Money Pit

Dated: 12/14/2017

Views: 24

Are you considering purchasing a "Fixer-Upper"?

Check out this awesome article from Curbed.com before making your decision.

fixer-upper-or-money-pit

Fixer-upper or money pit? How to decide

NEW YORK – Dec. 13, 2017 – With inventories so tight, some home buyers are giving fixer-upper homes a second look. The price point and location may attract more buyers to bite, even if the home needs some TLC.

But how do you tell a hidden gem from a hidden mess when shopping for a fixer-upper?

Paul Skema, president of the architecture and construction firm Roth Design + Build, and Jean Brownhill, founder of Sweeten, an online contracting service, shared considerations for home shoppers looking at a fixer-upper. Here are a few of their tips, via Curbed.com:

Determine the scope of the project
Are the renovations mostly cosmetic or structural? "Before you even look for an apartment or home, you want to understand what type of project you're comfortable with," says Skema. Projects where owners start making additions or knocking down walls can add a lot of money, time and risk. "One small bathroom renovation is hundreds of decisions you're going to need to make," says Brownhill. "You have to understand who you are as a person and how easily you make decisions."

Set a budget
After the downpayment, how much money will your buyers set aside for the fixer-upper? Factor in unexpected costs, such as planning an alternative living situation while the work is being done on the home. The architect and contractor should be able to provide you with estimates. "By setting the price, you're setting the approximate level of craft, finishes, and customer service that you're looking for," Brownhill says.

Establish a team
Larger projects require an architect, who will then hire a general contractor and then subcontractors. Homeowners will need to establish a communication path to prevent delays or budget pitfalls. And don't just hire the lowest-bidding architect or contractor, Skema warns. "Higher-quality firms limit the risk of the project," Skema says. "Cheaper firms, many with less knowledge and less experience, will require more involvement from the homeowner and ultimately bring more risk." Select a team with the right experience, solid references and a communication style that complements your own.

Meet the neighbors and the building association
Significant renovations may require approval from the homeowner's association. Meet your potential neighbors beforehand and warn them so as not to aggravate them. Learn about the permit process through your city's building department ahead of time. Upgrading plumbing and electrical systems, moving walls or changing structural elements will probably require a permit.

Protect yourself
Make sure the contractor has both liability insurance and workman's compensation, and make sure he or she has a Florida license. Also, ensure that your homeowner's policy will protect you from any contractor-caused issues.

Source: "Considering a Fixer-Upper? Here's What You Need to Know," Curbed.com (Dec. 6, 2017)

_________________________________________________________________________

Need help locating your next "Fixer-Upper"?

I can assist with your search, please contact me with any questions.

Keith Jeffrey - AKA / Broker Keith

Broker Associate

United Realty Group

brokerkeith@yahoo.com

www.brokerkeith.com 

Blog author image

Keith Jeffrey

The real estate market in South Florida is constantly changing. Running my own "We Buy Houses" TV Commercials, being an REO Broker for 7 yrs, Valuating Homes for Numerous Banks & Asset Managers, Site ....

Latest Blog Posts

IS IT TIME TO BUY OR SELL

Here is the latest Market Update for Palm Beach County, FL, courtesy of The Realtor Association of The Palm Beaches.Whether you are considering buying or selling a home, I am here to assist.Please

Read More

Waiting On A Bank Foreclosure May Now Take Even Longer

The old days when you could purchase a Bank Foreclosure within a few months of the Lis Pendens (Notice of Default) seem to be long gone.Check out this article from ATTOM Data Solutions in Bethesda,

Read More

Palm Beach County FL Home Prices Continue To Rise

Still wondering if it's a good time to purchase a home in Palm Beach County, FL?Read through this detailed article from Forbes.com Contributor Troy McCullen for more info

Read More

Will 2018 Be A Buyers Market Or A Sellers Market

Curious what the Chief Economists predict for the Real Estate Market in 2018?Check out this fantastic article by Jotham Sederstrom, staff writer at inman, with several comments from the

Read More