Wholesale marketplace for vacant land & cheap houses.

International Properties
Retire Today at the "Enclave at The Palms" - one of the world's best place to live & play

Want to retire in Belize? The Enclave at The Palms is our current development of 20 homes, and as of today we have completed the first home and wanted to take t...

International Properties

Unique Development Opportunity in Butler Bay, St. Croix, United States Virgin Islands!

Do you believe that dreams come true? That there is paradise on the Earth? That there is a place where you can escape from cities and just enjoy nature how it is?.

International Properties

Are you Interested in International Real Estate?

Take a look at what you can buy in Honduras and consider investing in a luxury vacation resort home.

International Properties

Retire Today at the "Enclave at The Palms" - one of the world's best place to live & play

Want to retire in Belize? The Enclave at The Palms is our current development of 20 homes, and as of today we have completed the first home and wanted to take the opportunity here...

Top Mistakes to Avoid When Buying Houses In Need Of Renovation

Articles

Published on Saturday, June 17, 2017 by Land Century

It's a romantic idea - buying a fixer-upper and making it your own. But there are homes that need renovations, and then there are homes that need a complete overhaul.

It's easy to get excited and caught up in the moment when you find a quaint little house in the perfect location at an irresistible price. That's why far too many home buyers wind up making costly mistakes that they regret later on down the road. Learn from their mistakes and avoid these blunders when buying a fixer-upper.


Not Knowing the Market and Overpaying

First and foremost, you need to know the local market and the market value of the home. Knowing this information will help you avoid paying too much for the home, or buying in an area where you're not likely to see a return.

On top of knowing the market value of the home, you need to consider the costs of renovating it. Far too often, home buyers take into account only the base value of the home and overlook the fact that they will need to put time and money into fixing the property. Sure, that home may be dirt cheap, but will the cost to bring it up to standard leave you with little-to-no equity? If that's the case, it's not worth buying.


Getting Caught Up in the Excitement and Not Knowing Your Limits

It's easy to get caught up in the excitement and emotions of finding a great fixer-upper. And when you let these emotions take over, you have a tendency to rush the buying process and overlook important details. Remember, these homes are often sold “as is.” Even though no repairs will be made, it's still important to ensure that you have a thorough inspection performed by a true professional.

Once you leave emotion at the door, you can sit down and really consider your limits. If the property checks out, you need to consider whether you have the skill or finances to renovate the home.


Not Getting Estimates from Local Contractors

It's not uncommon for home buyers to purchase a fixer-upper without getting an estimate from a local contractor. When you go this route, you wind up guesstimating the cost of repairs. Unless you have experience as a contractor, you'll likely underestimate the cost of renovating the home.

Even if you plan on doing most (or all) of the work yourself, talk to local contractors and ask for estimates on repair costs. These estimates will give you an idea of how much you'll wind up spending on both the purchase of the home and renovating it.

If the home needs major repairs, you may consider 203k FHA financing. This type of loan covers not only the purchase of the home, but the rehabilitation as well. And all of this is covered through one simple mortgage.


Underestimating Costs

The final cost of a home renovation is rarely the same as the initial quote. Unexpected things pop up, and oftentimes, they add to the cost of repairs. Installing a new shower can be a complex process if the plumbing needs work. Even seemingly simple repairs can come with costly and unexpected complications.

That's why it's so important to find a reputable contractor who will provide you with a realistic estimate.

But even with a realistic estimate, it's still important to leave room in your budget for unexpected costs. Most experts recommend adding 20% to the costs of estimates, and expect the work to take 20% longer than initially estimated.


Having Unrealistic Expectations

Many home buyers buy a fixer-upper, and imagine that the process is like what they see on home renovation television shows. That couldn't be further from the truth. Be prepared to spend several months living in the renovation, and be ready for unexpected things to happen every step of the way.

That's not to say that renovating a home isn't a rewarding experience - it is. But you need know what you're getting into and manage your expectations appropriately.


Not Having a Plan B

In a perfect world, the renovations would go off without a hitch. But things rarely happen this way, and unfortunately, some home buyers have to abandon their renovation plans.

Having an exit strategy, or a plan B, can help you be prepared for the worst case scenario. Consider all of the things that could go wrong or change, and create a list of solutions that can help you resolve these issues - or get out of Dodge.


Not Getting a Home Inspection

We touched on this earlier, but it's important to reiterate the need for a home inspection when buying a fixer-upper. Many home buyers rush into the process, get swept up in the moment and never have a thorough inspection performed. Later on down the road, they wind up overpaying for the home.

Allow yourself enough time to have the right professionals check out the home, and have an inspection performed. The last thing you want is to be stuck with a renovation project that is far bigger than you had anticipated.


Biting Off More than You Can Chew

Many home buyers think they want to put in the work, but when it comes down to it, they just don't have time, energy, money or skill to get the job done right. It's easy to underestimate the costs of fixing up a home when you're staring at the home's low price tag. But not being realistic about how much work needs to be done can be a costly mistake.

Know how much work needs to go into the property. Know whether you will realistically be able to devote that time, money and effort.

Renovating a home can be a lucrative opportunity - if you find the right property. However, it's important to really know what you're getting into before you commit to buying the home. Have a home inspection performed, work with local contractors to determine how much repairs will cost, and be honest with yourself about whether you truly want to devote the time and effort into renovating the home.

Share this Article
Great development opportunity in The Enclave at The Palms, Northern Belize!

The Enclave at The Palms is a residential subdivision located in the Corozal Province in Northern Belize. This part of the country is very popular with expats, and The Enclave is l...

Featured Listings

10.15 Acres
Blanca, CO
40 Acres
Model, CO
1995 Sq.Ft.
Corning, CA
5 Acres
San Luis, CO
0.26 Acres
Lehigh Acres, FL
0.75 Acres
Lehigh Acres, FL
1 Acre
Willcox, AZ
0.3 Acres
Shelter Cove, CA
0.3 Acres
Shelter Cove, CA
1.68 Acres
Sanders, AZ
1.05 Acres
Concho, AZ
Be Smart, Live Well in North Port, Florida! Great opportunity!

North Port, Florida, is the place you have been waiting for. One of biggest city in Sarasota County, North Port still feels more like a small town and people hope to keep it that w...

120 acres for sale in beautiful Sierra Blanca, TX

Have you ever imagine yourself in the role of Texas cowboy in popular western movie? Where is just you, desert and wild nature? Or you were dreaming of build your own big rancho wi...

Featured Profiles

Verified Wholesaler

Land Century, LLC

Verified Wholesaler

GreenBridge Holdings, LLC

Verified Wholesaler

Harris Investments, LLC

Verified Wholesaler

BuildFortune, LLC

Unique Development Opportunity in Butler Bay, St. Croix, United States Virgin Islands!

Do you believe that dreams come true? That there is paradise on the Earth? That there is a place where you can escape from cities and just enjoy nature how it is?One of this places...

Beautiful Acreage with Farm House for Sale in Corning, CA

This amazing and commodious property is located in Corning, CA, well-known "Olive Capital of the World", can become your own paradise in California. Corning is a well-situated thor...

SHELTER COVE, CALIFORNIA - THE LOST COAST ON PACIFIC OCEAN IN NORTHERN CALIFORNIA

Shelter Cove is a quiet and beautiful beach community in Northern California, with one of the world's very few exclusive black sand beaches. Properties are not far from the ocean...

Are you Interested in International Real Estate?

Calm Waters Resort – Honduras:In beautiful Honduras, the newly launched Calm Waters Resort project is currently under construction, and are offering several of the resort’s vil...

Retire Today at the "Enclave at The Palms" - one of the world's best place to live & play

5 Reasons Why Moving to Belize is Awesome!The Atmosphere. There is something magical about Belize. All your cares and stresses melt away and you enjoy the laid back atmosphere and...

What are Real Estate Investment Trusts and How Do They Work?

When it comes to real estate investments, you'll see a lot of people talking about REITs, or real estate investment trusts. Some people call them "real estate investment stock."The...

Featured Listings

10.15 Acres
Blanca, CO
40 Acres
Model, CO
1995 Sq.Ft.
Corning, CA
5 Acres
San Luis, CO
0.26 Acres
Lehigh Acres, FL
0.75 Acres
Lehigh Acres, FL
1 Acre
Willcox, AZ
0.3 Acres
Shelter Cove, CA
0.3 Acres
Shelter Cove, CA
1.68 Acres
Sanders, AZ
1.05 Acres
Concho, AZ
Business Ideas for Vacant Land - How to Create Income Producing Assets

Vacant land can become an income producing asset. Land is valuable, and while land may be most valuable when a structure is built on it, this doesn't mean it can start producing in...

How Blockchain Could Change the Real Estate Industry

You've heard of cryptocurrencies – unless you've been living under a rock – but you're not sure how they work. Bitcoin, the world's largest cryptocurrency, is run on what's cal...

Featured Profiles

Verified Wholesaler

Land Century, LLC

Verified Wholesaler

GreenBridge Holdings, LLC

Verified Wholesaler

Harris Investments, LLC

Verified Wholesaler

BuildFortune, LLC

What Does the Right of Refusal Mean in Real Estate?

The first right of refusal in real estate is a provision an agreement or lease that gives a potentially interested party the right to buy the property before the seller negotiates...

Avoid Being Scammed on Craigslist and eBay When Buying Property

Just about anything you can imagine can be bought and sold on eBay and Craigslist, from old toasters to vintage record collections, and yes, even property. While these sites have c...

How to Get into Commercial Real Estate Investing & What You Need to Know

When you think of real estate investing, commercial property is usually the first thing that comes to mind. After all, commercial development is where the money is at. As lucrative...

Flipping Houses or Rental Properties - Which Is More Profitable?

You're ready to invest in real estate, but you've hit a brick wall: you don't know whether to rent out your new property, or flip it for a quick profit. Flipping is tempting - it's...

California Areas for Land & Property Investments in Q1 - Q2 2018

Several cities in California topped the list for the hottest real estate markets in 2017. For those looking to invest in land and property in the state, these top cities are your b...