Buying a Fixer-upper Without Fear

You have found a home with good bones and think that it could turn into a masterpiece with your creativity. “But,”...though you see the potential, you are reluctant to get the property because you have never taken on the task of renovating a property before. You are concerned with how to get your imagination into actualization without costly mistakes.

You should not be intimidated by a good deal because of the renovation task. The task of renovating a home is not as difficult as one may think. The risk is minimized with the right professional by your side.

The first professional you need is a real estate agent that knows about fixing up properties. The real estate agent will do a Comparative Market Analysis and show you data of similar homes that got renovated with their sold price. A real estate agent should give you ideas and weigh the feasibility of your plans before you write a purchase contract.

The second is an excellent general contractor. A general contractor will listen to your ideas and put your vision on paper with potential costs. Many good contractors have access to computer-aided drawings that allows you to see your concept in virtual reality before you take on the task. The general contractor will be responsible for various subcontractors with the skills needed to bring your imagination into reality and pull the required building permits. Approaching your task in this manner will keep you from making costly mistakes.

It would be best if you had plan changes drawn promptly because of the time limitation of the inspection clause of your purchase contract. Some general contractors may charge an upfront fee to draw up your plan with a material cost. Some contractors would refund their upfront fee if you used them to complete your project.

After the general contractor returns with the potential cost to renovate the property, you add it to your purchase contract price to get the total feasibility cost. At this point, you subtract the purchase price and the full improvement cost from the Comparative Market Analysis amount. If there is sizable equity, then the deal is profitable to pursue.

Creativity is the key; it is not essentially how much you spend but how thrifty you spend to make it all fit together in harmony.

Comments

Many Do Not Believe in the Covid-19 Vaccine

Despite the U.S. government stating that there is a vaccine to minimize the chances of death due to Covid-19, most people are in denial. Many people think it is a trick to get some small technology into your body to control you and monitor you. They go as far as connecting their theory of an evil plot to implement 5 G technology. Some people have put out what they claim is proof that Bill Gates is involved, and he and others want to control the population of the world and so on and on. You wonder why there is so much mistrust? But it is not unwarranted. It is part of American history that the colonist gave free blankets and linen contaminated with smallpox to cause disfiguring scars, blindness, and death to the American Indians. Then there was Tuskegee experiment began in 1932, where they freely injected over 600 African Americans with syphilis, a contagious venereal disease with no known cure at the time. Some Republicans believe the Democrats want to use the COVID 19 scare to ...

Prevent Foreclosure from the Start

Everyone feels a sense of pride after they have made their purchase of a home. For a while, you may not have the desire to go out much because you want to bask in your moment of achievement. Since you close on your home, you will find that more credit companies want to extend credit to you. Homes usually go up in value, so credit companies feel that you are collateral-worthy. It is easy to get overextended if you are not budget-conscious. When you applied for a mortgage, most loan officers will advise you not to buy anything with a credit card and do not ask for new credit while a mortgage decision is pending with a lender. The mortgage company uses all current minimum payments of your debts versus your income to determine a mortgage on your behalf. If you got new credits, it would throw off their figures and change your debt profile. The lender uses the debt profile versus your income to determine the likelihood of the lender getting paid back for the loan. When your de...

House Inspection a Necessary Evil

You have been looking around for months to find the home of your dream, and now you think you have found one. You are currently fascinated with your newfound love, but you should step back and analyze your findings. Some people may have worked two jobs to afford the down payment on a home and have limited liquid cash beyond that to provide anything breaking down in the first three years after closing. Thus, you need to get a home inspection known as the necessary evil of the industry. The results can determine the evil part. A home inspection can reveal a lot more than the owner of the home want to realize. If the owner does not want to make concessions for the negative home inspection report, it can be disappointing to the buyer after paying for a home inspection report. Many home buyers will feel upset that they paid the inspection fee and they cannot get the home because it reveals issues that the buyer would have to come out of their pocket to fix soon after closing. Going alon...

KWAB REVIEW

Search This Blog