Fixer-upper properties are a popular choice for many investors. However, it’s not always as simple as it looks on TV. In our latest post, we will help you learn more about buying a fixer-upper property in Chicago.
There are many important things to consider before buying a fixer-upper property in Chicago. The amount of work and the associated costs can often be underestimated. Make sure the structure is sound and that there is a solid foundation. Here are a few questions to ask yourself before buying a fixer-upper property in Chicago.
Ask Yourself This:
Do you know what you are getting into?
Unless you are only buying for the land, you’ll want to know what’s going on with the structure of the house. First, have a home inspection done if possible to find out just how much you will need to fix. Talk to local contractors to determine your repair costs. Keep in mind, when fixing up a house there are usually ALWAYS extra costs. Don’t forget to pad your budget a bit for the unexpected.
Can you afford the renovations?
Make sure you have an accurate idea of the repair costs. Talk to several people about what it is going to cost you. Research material costs thoroughly if you plan on doing any of the work yourself. Keep in mind you will also have to pay for inspections and permits in order for the work to be done.
Why do you want a fixer-upper?
Do you want to save money on a house? Buying a fixer-upper is a great way to find a good deal. However, it’s not always the case after making repairs and upgrades. Make sure you haven’t been watching too much HGTV and that you really understand what goes into buying a fixer-upper home.
Are you planning on flipping the house once it is repaired or moving in yourself? This will have an effect on how much you spend to fix it up. You wouldn’t add the top of the line appliances, countertops and cabinetry to a house you want to sell. However, you might choose these things when moving into the house yourself.
Can you really handle the work?
You don’t want to be fixing it up forever. You need to have a plan of action to get it repaired and move in ready quickly and efficiently. You need to have experience here. If you don’t have it, get it before you buy a fixer-upper property in Chicago.
Things To Consider
There are fewer people out there who want to buy a fixer-upper property. That said, the people who are buying fixer-uppers are likely investors or experienced buyers who know how to put together a good offer. While you won’t have much competition, the competition you do have could be fierce. Take a look at public records to see who is buying the discounted properties in your area. Knowing who you are going up against will allow you to better prepare.
Many like the idea of buying a fixer-upper property because they know they will be able to fix it up any way they choose. You will often be able to buy a fixer-upper at a deep discount. You can take the money you save, to fix up the house however you’d like. So long as there are no major problems, it can be a great way to buy your dream home at a low price.
Some people will move into their fixer-upper property right away. It will save you money but it can make day to day life a bit difficult. If there are major repairs needed to the kitchen, bath, plumbing or electrical systems, you might want to take care of those before you move in. Living in the house while the repairs are taking place can be stressful, tiring, and ultimately make everything take longer. However, paying for places to live isn’t always practical. Try to focus on one part of the house at a time so you can try to live in the rest of the space without too much discomfort.