There's a lot of things to consider when purchasing a fixer upper home in the Greater Danbury,CT to live in. The right fixer upper could lead to quick quity if done properly. Please consider the following:
1. Can the home be mortgaged right now?
Some homes in need of upgrades or repairs could be in such poor state of repair it may not qualify for financing. FHA loans are very picky and some sellers may be want to take an offer with that contingency.
2. What is the cost to repair
An experienced contractor should give you an estimate on the costs to repair. Always have a contingency fund available for any overages or unexpected property issues. Major renovations, such as kitchens & baths can get expensive. It also be be costly to take down any walls or reconfigure the floor plan. Some repairs are easy, such as painting, landscaping cleanup and replacement of light fixtures.
3. Can you live in the home while renovations are done?
That is a big question, especially if you are selling your current home to purchase a new property. Can you stay at your current place until you can move in? Does your family situation allow you to live in a construction project while you work on your dream home? Do you have a place to cook or shower while kitchen & baths are being brought up to standards.
4. What should be done now, what should be done later?
Look at your budget and property and see what needs to be done first. Address health or quality of life, issues first such as roofs, septic and furnace before going ahead with any cosmetic improvements. Prioritize the list of what you want to do or should do.
5. Do you have the time to fix yourself or hire trades-professionals
Hiring reliable professionals is a sure what to can the jobs done. Ask around for referrals and do your diligence when hiring. Ask the contractor what their fee is, either by the hour or by the job. do you have the money available for labor & supplies?Running a full scale remodel plus working a full time job will be stressful. Know your limits.
6. What is the after repaired market?
It is important not to over improve your new home for the market. As an experienced real estate professional serving the Greater Danbury area, I can provide an idea of what the home is worth once it is updated to today's market as well as estimate for rent.
Thinking of purchasing a home? Contact Jonathan Hall with William Pitt Sotheby's International Realty. Contact me for your home search in the Greater Danbury area. Call or text 203-417-0523 or send me email.
Jonathan you raised some excellent points. Purchasing a fixer upper may sound good, but there are many things to consider, especially point #1. Fixer uppers are not for everyone.
My motto is, "If you can't afford it renovated, you can't afford TO renovate it." I helped buyers who had stars in their eyes 10 years ago when they found a home in a neighborhood they couldn't afford that needed drywall on the first and basement floors, new flooring on the first floor and a kitchen. The home had flooded and there was no kitchen at all. No cabinets, no appliances, nothing.
They were drawn to it because of the low, low price. They financed with a 203K renovation loan and spent the next 10 years tweaking the home to what they wanted it to be, going bankrupt along the way. Just busted them out of that home. They are my cautionary tale of big fixer upper project. Cosmetic stuff is one thing. Not having drywall, flooring or a kitchen is a another.
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Kris Collis, Associate...
East Stroudsburg, PA
Jonathan, good points, new fixer upper buyers cannot be reminded often enough of the pitfalls. If their due diligence falls short or is insufficient, the consequences can be significant. As Shannon pointed out, TV shows the highlights, not the lowlights.
I agree with Chris Ann, #3, yet sometimes buying a fixer could be a prudent decision for an investor. It depends on the time line before refinancing or remodeling to increase cash flows..
JONATHAN HALL Thank you for the infomation, I really Looking forward to reading articles Regaring Real Estate .
I’ve never really considered getting home in Danbury but I might one day for sure!
I love the uniqueness of capitalizing in ALL CAPS the importance of somebody’s name. Maybe you did it by accident but it said you apart for sure as I was looking down at the comments, John Metz
These are good tips for those thinking of buying a fixer-upper. I used to spend a lot of time in Danbury (decades ago). I remember it well!
Interest-been here all my life. Town keeps on growing, about 85,000 people
Great points. It's important to figure out if you are going to put more money into it than you can sell it for.
Hi Jonathan:
There is a lot of good advice here for those interested in a fixer upper. Those of an HGTV mindset are in for a surprise!
Jeff
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