Buying a fixer-upper home in Rhode Island can save you a ton of money, but you should also do some homework before deciding that your next home must be a fixer-upper.
To help homebuyers who may be wondering whether or not a fixer-upper suits their personal and financial needs, industry experts have prepared a FREE report entitled Fixer Uppers: Myths & Facts – What You Should Know Before You Buy.
Research the Facts and Do Your Homework First
Too many prospective homebuyers tend to have a romanticized version of the entire process and are shocked when confronted with the hard reality.
Buying a fixer-upper can represent an excellent opportunity to get a property for less as long as you thoroughly research the facts and run the financial numbers BEFORE you purchase.
A fixer-upper may be a good investment. But it can also be a giant money pit if you misestimate renovations, contract out for most projects, and skip an inspection.
Is a Fixer-Upper Right for Me?
This report dispels the 5 most commonly held myths surrounding fixer-upper properties and provides a simple financial formula for estimating available profit or savings.
Myth #1: I Can Buy the Home at Low Cost and Flip it for More Money
Not all fixer-uppers are direct costs. Other factors may be involved regarding the home’s value after renovations are completed, the current face value, the total sum of repairs, and more. This is where thorough research comes in if you want to profit.
Think about what you purchased the home for and what it could be worth after remodeling. Depending on conditions like the area, the extent of damage repairs, and Rhode Island state laws regarding home estates. Fixer-uppers do not necessarily mean big bucks. Speak to a real estate professional for information about the area and your end goal for the property. They can let you know if the investment is or is not worth your time.
Myth 2: It Is Cheap to Repair a Fixer-upper
Home renovation TV shows always fool you into thinking that remodeling is fun, easy, and super profitable. While it’s true that some fixer-uppers come cheap, that’s not always the case.
Homes in Rhode Island are expensive, even if they’re rundown homes. Expecting to buy a house for $100k and flipping it for $300K or more is not always plausible.
You could also purchase a home at a low rate, and the renovations completely eat at your investment.
Myth 3: You Have to Purchase Your Fixer-Upper as It Comes
You don’t have to take the fixer-upper at face value. Even good deals on the outside might not be worth it on the inside. A home inspection takes you through the extent of damage in the home.
You can calculate the amount of money required to renovate and if the revenue outweighs the cost in the long run. Home inspections are typically inexpensive ($300-$500) and help protect your long-term investment.
Myth 4: You Will Always Get the One You Want
These days, home flipping is a hot market. There are tons of home renovators buying a fixer-upper in nearly every market. Be prepared to miss out on a deal if you are in an area with hot buyers. You may not always get the home you wish to remodel and lose out on an opportunity if you put all your eggs in one housing basket.
Myth 5: All You Have to Do Is Fix the Cosmetic Issues
Wrong. Focusing on the home’s outside appearance may do more harm than good. It’s essential to examine and consider replacing old and outdated systems like the air conditioning or even plumbing.
Fixing a home begins at the foundation—work from the inside out to avoid missing something important that could cost thousands of dollars years later. A home inspection will allow you to get deep into the issues of the home before slapping on some paint and marble.
Negotiate the Cost of Repairs
We know repairs will be in order. Obviously, or it would not need fixing.
Most sellers will start with a higher purchase price, leaving room for negotiation depending on the home inspection.
If a homeowner wants out of the home quickly, you have a good chance of negotiating a fair price that will give you a great deal.
However, if the home has structural damage or needs significant repairs, it could cost you close to 30% in addition to the selling price.
It depends on what the seller is willing and not willing to do.
Your Home Sold Guaranteed Realty Has a Hotlist of Off Market Fixer-Uppers in Rhode Island
To learn more about buying a fixer-upper home in Rhode Island and how it will impact your buying decision, contact Your Home Sold Guaranteed Realty-The Nathan Clark Team.
We have access to a hotlist of fixer-uppers you won’t find online.
If you are looking to buy a fixer-upper and turn it for profit in Rhode Island, we will guide you through the process every step of the way. Your satisfaction is our top priority. Call us at 401-288-3557 or fill out the form below for more information.