You’ve found your dream home, but it’s a fixer-upper. How do you finance the purchase and renovate the home without going broke?
It’s possible to do, but you’ll need to be careful and know what you’re doing. Here are some tips on how to finance and fix up a fixer-upper.
Get a loan that covers both the purchase price and the estimated cost of repairs.
There are a few different types of loans you can get for a fixer-upper, but the best option is usually a home equity line of credit (HELOC). With a HELOC, you’ll have access to funds as you need them, which can be helpful if repair costs end up being more than you expect.
Make sure you have a realistic budget for both the purchase price and repairs.
It’s easy to get caught up in the excitement of finding a fixer-upper and overestimate how much money you’ll need to spend on repairs. Before you start looking at homes, sit down and figure out how much you can realistically afford to spend.
Don’t forget to factor in the cost of permits and inspections.
If you’re planning on doing any major renovations, you’ll need to get permits from your local municipality. These can sometimes be expensive, so make sure to factor that cost into your budget. You’ll also need to have the home inspected after the repairs are completed to make sure they were done properly.
Hire a reputable contractor to do the work.
This is probably the most important tip on this list. A good contractor will be able to help you stay within your budget and complete the work in a timely manner. They should also be able to give you a realistic estimate of the repairs that need to be done.
Be prepared for the unexpected.
No matter how well you plan, there’s always a chance that something will go wrong. Make sure you have a contingency fund set aside in case you run into any unforeseen problems.
Landscaping is important
You may be tempted to skimp on landscaping because it’s not a structural repair, but it’s important to remember that first impressions matter. A well-landscaped yard will make your home more appealing to potential buyers and could even help you sell the home for more money. Remember to contact Sydneytreecompany.com.au for any tree removal needs you might have.
Don’t forget about the little things.
It’s easy to get so focused on the big repairs that you forget about the small details, but they’re important, too. Make sure to budget for things like new light fixtures, door hardware, and window treatments.
Fixer-uppers often take longer to complete than you originally expected, so it’s important to be patient. If you’re able to live in the home while repairs are being done, that’s great, but if not, make sure you have a place to stay that won’t break the bank.
There you go!
Fixing up a fixer-upper can be a daunting task, but it’s definitely doable with careful planning and execution. By following these tips, you’ll be able to finance and fix up your home without breaking the bank.