Looking for a deal on a new home? The market is fairly competitive right now, so it may be frustrating to see that prices are higher than you had hoped. But, one way to save money on a home is looking for a fixer upper, which is a home that needs a bit of work before it's perfect. Not just any fixer upper in University Park in Denver will do, though. To find the perfect fixer upper, follow these tips:
Know what the tough fixes are.
Some repairs are inexpensive and easy to fix, while others will require a lot of effort. Before buying a fixer upper, you have to know the difference so you understand how much work will need to be put into the home. For example, applying a fresh coat of paint is an inexpensive way to completely transform a room, and it doesn’t take long to do it, either. However, replacing a roof or HVAC system is something you will need to call a professional for, so it will be much more expensive and take a bit more time. Knowing the difference between simple and tough repairs will help you find a fixer upper that is worth fixing.
Find a reliable home inspector.
Before you close on a home—whether it’s a fixer upper or not—you should always have a home inspector come take a closer look. There could be a lot of hidden problems with a fixer upper, and a home inspector will be able to spot them before you agree to do a deal. An inspector could notice signs of mold or a potential problem with the foundation. It’s important to know every single problem that the fixer upper has so you can use them as bargaining chips during the negotiation. Learn about the common problems found during home inspections
Look into loans.
Buying a home may drain all of your savings, so how are you going to pay for the renovations? Don’t put an offer on a fixer upper until you have talked to a lender about financing the renovations. Most people who purchase a fixer upper take out a renovation loan either through a mortgage or a home equity line of credit. Almost every lender offers these loans, but that doesn’t mean you’ll automatically be approved for one. Make sure you have this conversation with your lender prior to making an offer on the home—and come to the meeting prepared. The lender will need to know the approximate cost of repairs and the value of the home after the repairs are complete. This will help them determine whether it’s wise to approve the renovation loan.
Are you ready to look for a new home in University Park? Regardless of whether you’re looking for a fixer upper or a move-in ready home, talk to the professionals! Contact Elevation Realty
to be connected to a team of experienced real estate experts ready to help you on your home buying or selling journey.