Purchasing a home with a great layout or unique features that needs work is frequently done. Budgeting for this type of project is going to be immensely difficult without professional help. Investing in a fixer-upper is a bit of a risk as hidden problems can rear their ugly heads during the renovation process. The seller could have tried to hide issues that might have been a reason to reconsider for a buyer. The following are tips to budget appropriately for your fixer-upper.
Save For The Most Important Renovations First
There should be a list of improvements and renovations that need to be done in order of priority. The bathrooms or kitchen might be the first rooms targeted. Flooring is another area that should be considered as you do not want any hidden surprises under the current flooring. Things like water damage or mold can be found in areas after the flooring is taken up. Hidden issues can add thousands of dollars in costs to a simple project to be remedied appropriately.
See What is Under The Current Flooring
There are times where the carpet is removed only to reveal a tile or wood floor underneath. This doesn’t happen in all cases but a home with a number of owners could have had multiple floor replacements. Painted concrete floors are also growing in popularity due to the modern look and lack of need to get expensive tile/wood materials. Take a look at all of the flooring options as you might find one you hadn’t considered.
Dumpster Rental
A fixer-upper can be great for a person with home improvement/renovation experience. A person that can handle flooring and carpentry can save thousands. Flipping homes is often wise for people that possess these skills and have the capital to purchase a home. Dumpster rental and materials might be the only thing that needs to be fixed. Enlisting the help of former coworkers can be wise as this will help speed up the process. You might have to return the favor especially if you are a flooring specialist and a friend does home painting.
A Finished Basement Expands The Livable Space in the Home
The basement has traditionally been used for storage while it is a far more versatile space. The ability to finish the basement can lead to far more livable space in terms of square footage. The space can serve a number of purposes like that of entertainment or a nice space for a teenager that wants their privacy. The beauty of basements being used for entertainment space is that noise is insulated. The last thing anyone wants are issues with neighbors over noise as some people are far more sensitive than others.
Budgeting appropriately for your fixer-upper can be done over time. You might not want to take out a loan which means you can pay for a project a few times per year. Owning a home that you are going to improve in a huge way is a great investment that will pay off down the line.