Acquiring a San Fernando Valley fixer-upper home is excellent for many reasons. Maybe it’s been your dream to become a real estate investor. Perhaps you enjoy building with your hands and would like a project like a fixer-upper home. Or it could be that you need a home, and your credit score doesn’t allow you a conventional loan.
But before you run off and buy a home that needs a ton of work, there are several things you need to consider, especially if you are investing in a fixer-upper to flip for a profit.
What is a Fixer-Upper?
A fixer-upper home is a house that is usually older and needs a significant amount of repairs and renovations for it to be ready for occupancy. Fixer-uppers can be a great way to get into a home in the San Fernando Valley without breaking the bank. Of course, we can’t deny that these homes may require upgrades, maintenance, or cosmetic work.
But, in California’s housing market today, opting for a fixer-upper may be a great idea. And while buying a fixer-upper in the San Fernando Valley might involve more work, the advantages far outweigh the disadvantages. Fixer-uppers offer you the chance to make your dream home a reality. They also provide an affordable option for homebuyers who aren’t sure how much they want to spend on a home.
What to Consider When Buying a Fixer-Upper
If you’re considering buying a fixer-upper in the San Fernando Valley, you’re probably weighing the pros and cons of taking on a renovation project. Here are several things to consider before you make your decision.
» While You Can Easily Fix Some Things, You Can’t Fix Everything
The amount of work you must do varies drastically from one fixer-upper to another. Some homes may need new paint, floors, windows, etc. However, rebuilding from the ground up might be a cheaper option in some cases. For example, new drainage, roofing, and HVAC systems can be costly.
Always commit to having a property inspection to avoid any surprises regarding the foundation and overall structure. Structural work is the most expensive cost when renovating a fixer-upper, so you want to avoid that whenever possible. Multiple issues such as the ones listed above can put your total renovation costs well over what you may have thought initially.
» Creating a Budget is Essential
Without a well-thought-out budget, you’ll almost always spend thousands above what you initially expected. The price of some things may be higher than you might have anticipated, and you may run into unexpected repairs that you must fix for the project to proceed. Remember that such issues can also delay your original renovation timeline, which might cost you some money. Our experts at Park Regency recommend planning an additional 15% on top of your budget to avoid derailing your fixer-upper plan.
» Make Compromises
Making compromises is the best way to stay within your budget when investing in a fixer-upper. One way to save money is by swapping high-cost finishes for things that look similar. You can also look for used materials in good condition or reuse materials you already have. Consider repainting or refinishing cabinets instead of ditching them entirely.
» Know When to Hire a Pro Instead of DIY
While we all love a good DIY project, knowing when to hire a professional contractor will make a significant difference in whether or not you’ll complete the project correctly. Spending money on materials for a project that won’t last can cause you to spend more. Don’t forget that professional contractors cost money. You’ll need to add this additional cost to your budget.
Benefits to Buying a Fixer-Upper
When you buy a ready home, you can move in immediately and get settled. However, buying a fixer-upper is just the beginning. Buying a fixer-upper, however, can be a great way to get more bang for your buck. Here are five benefits of purchasing a fixer-upper home in the San Fernando Valley:
1. Cost
Fixer-uppers are usually priced lower than comparable homes in good condition. This can be an excellent opportunity to get a good deal on a property and add value through your renovations.
2. Equity
As you renovate your fixer-upper, the home’s value will likely increase. This can give you a good return on your investment when you sell the property.
3. You decide where to invest
One of the main advantages of buying a fixer-upper home is that you get to choose where your money goes. Do you spend a lot of time in the kitchen and want a modern kitchen? You can have it! It is a perfect opportunity to create a home just as you wish.
4. You’ll get into your desired neighborhood at a lower cost
A fixer-upper could be a great option if you’re eyeing a particular area with no listed homes. Also, you can avoid high purchase costs by finding a home that needs repairs in the perfect neighborhood.
5. Flexible timeline
When you buy a fixer-upper, you’ll have the luxury of defining your timeline. You could renovate entirely before moving in or save even further by renovating slowly over time.
How Long Does it Take to Renovate a Fixer-Upper?
Buying a fixer-upper in the San Fernando Valley will ultimately depend on your circumstances and goals. If you have the time and dedication that a renovation project requires and the financial resources to cover the cost, a fixer-upper can be an excellent opportunity to get a home that suits your needs at a reasonable price.
If you decide to pursue a fixer-upper in the San Fernando Valley, you need to work with reliable San Fernando Valley real estate agents to help you find the right property and walk you through the renovation process. Park Regency is a trusted agency in the San Fernando Valley area that can assist you in finding the best San Fernando Valley homes for sale and help you make informed decisions throughout the process.
Call us today at 818-363-6116 or contact us online if you have any questions about fixer-upper homes for sale in San Fernando Valley!.